PayPal is expanding its footprint in the digital currency space with new updates to its U.S. dollar-pegged stablecoin, PYUSD. In a move designed to boost adoption and reward long-term holders, the payments giant has introduced a new PYUSD Rewards Program and added Arbitrum to the list of supported blockchains.
The Paxos-issued stablecoin, which was already compatible with Ethereum and Solana, can now be transferred and used on the Arbitrum network—a leading Layer 2 solution built to reduce fees and speed up transactions on Ethereum. With this update, Arbitrum joins Ethereum and Solana as one of the three officially supported chains for PYUSD, as outlined in PayPal’s updated cryptocurrency terms.
PYUSD Rewards Program: Earn by Holding
The new PYUSD Rewards Program is aimed at users who maintain at least 1.0 PYUSD in their PayPal Cryptocurrencies Hub. According to the company, holders will earn rewards daily based on their average balance, with the yield calculated using an annual PYUSD Rewards Rate, divided into daily accruals.
Here’s how it works:
- Rewards are automatically credited in PYUSD.
- Calculations are based on the average daily balance in a user’s account.
- Rewards are distributed monthly—either at the start of the month or within 30 days.
Users can opt out of the program at any time, but doing so will pause all future rewards.
Who’s Eligible?
To participate, users must:
- Hold a Cryptocurrencies Hub account with no negative balance.
- Ensure the account is free from holds, limitations, or restrictions.
- Business accounts are also eligible under the same conditions.
Importantly, while PayPal operates the rewards infrastructure, the stablecoin itself is issued by Paxos, and therefore subject to Paxos’ terms and conditions. PayPal notes that it may discontinue support for PYUSD at any time, with or without advance notice. If support is withdrawn, users will be required to transfer their holdings to an external wallet or sell the assets.
Strengthening PYUSD’s Role in the Stablecoin Market
These updates reflect PayPal’s continued investment in expanding PYUSD’s utility and appeal. By adding Arbitrum—a fast-growing blockchain that supports lower transaction fees—the company aims to make PYUSD more accessible and efficient for everyday use in Web3 applications.
At the same time, the new rewards model offers users an incentive to hold rather than instantly convert, potentially increasing long-term adoption and engagement.
