PayPal continues to expand its stablecoin PYUSD, adding support for the Arbitrum blockchain. This is significant for enhancing its accessibility and use in decentralized finance.
Expansion to Arbitrum Blockchain
PYUSD, launched in 2023, is now available on the Arbitrum blockchain, in addition to Ethereum and Solana. This expansion significantly increases the stablecoin’s compatibility with other DeFi platforms and dApps, allowing users to transact more efficiently with PYUSD.
Rewards Program for PYUSD Holders
PayPal has also launched the PYUSD Rewards Program aimed at users who hold at least 1 PYUSD in their Cryptocurrencies Hub. Users can earn daily rewards based on their average daily PYUSD balance, providing additional income opportunities for maintaining an active account.
Potential and Risks of PYUSD
While PayPal emphasizes the stability of PYUSD as a yield-bearing digital asset, the company notifies that the token is issued by Paxos and subject to their compliance terms. PayPal retains the right to terminate support for PYUSD at any time, which may require users to sell or transfer tokens to external wallets.
The expansion of PYUSD to the Arbitrum blockchain and the launch of the rewards program highlight PayPal's strategic approach to decentralized finance and increase opportunities for users to earn on the stablecoin.
