PayPal has announced the support of its stablecoin PYUSD on the Arbitrum network, marking a significant step in its development and expansion.
PYUSD Support on Arbitrum
According to updated terms of service published on July 16, 2025, PYUSD, one of PayPal's crypto assets, is now supported on the Arbitrum network. This adds integration to its existing supports on Ethereum and Solana. The updated terms also include new sections regarding PYUSD's trading limits on Arbitrum.
History of PYUSD and Its Uses
PYUSD was launched in August 2023 on the Ethereum platform. Fully backed by the US dollar, short-term treasury bills, and high-liquidity assets, it provides price stability in digital payments. PayPal CEO Dan Schulman noted that PYUSD is designed as a stable instrument that bridges digital and fiat currencies.
Significance of Integration for Digital Finance
The expansion of PYUSD support to Arbitrum, which occurred after its integration with Solana in May 2024, underscores the growing competition and institutional adoption in the stablecoin space. Paxos, the issuer of PYUSD, previously planned to launch its tokenization platform in this ecosystem in September 2024. The launch of PYUSD on Arbitrum is viewed as a significant milestone in the development of digital finance infrastructure.
PayPal's expansion of PYUSD support to the Arbitrum network reflects the increasing importance of stablecoins in the digital financial ecosystem and the potential competition in this market.
