PayPal USD Stablecoin Secretly Added On The Arbitrum Layer 2 Network

PayPal’s USD-pegged stablecoin, PYUSD, has secretly went live on Ethereum Layer 2 network Arbitrum, accordign to an updated version of PayPal’s cryptocurrency terms and conditions, published on July 16, 2025.

The revised "PYUSD Stablecoin" section of the terms now explicitly states

“One of the Crypto Assets that PayPal supports is PYUSD, a U.S. dollar-denominated stablecoin. PYUSD is issued by Paxos, not PayPal, on each of the Ethereum, Solana, and Arbitrum cryptocurrency networks.”

Further confirmation comes from the "Transaction Limits" section, which now also references PYUSD on Arbitrum—a detail not present in the earlier, July 11 version according to the Wayback Machine.

This marks the first official mention of Arbitrum support for PYUSD in PayPal’s documentation.

Despite these changes, PayPal has not issued a public announcement about the Arbitrum integration. Industry news sources have reached out for comment, but the company has yet to provide an official statement.

A Growing Multichain Strategy

PayPal USD was first launched in August 2023 on Ethereum, in partnership with regulated issuer Paxos.

PYUSD is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, ensuring stability and transparency.

In May 2024, PayPal expanded PYUSD support to the Solana network, reinforcing its mission to make stable-value digital currencies available for everyday commerce.

This latest move reflects both PayPal and Paxos’s strategy to embrace scalable, low-cost blockchain networks. Paxos itself integrated with Arbitrum in September 2024 to enhance tokenization support and reduce transaction costs for its products.

The addition of Arbitrum expands PYUSD’s reach to a fast-growing Ethereum Layer 2 network known for its scalability and low transaction fees.

This positions PayPal’s stablecoin as an increasingly versatile payment solution, optimized for mainstream and DeFi use cases alike.

As PayPal continues to broaden its blockchain integrations, PYUSD is poised to play a larger role in bridging traditional payments and the next generation of digital commerce.