PayPal is stepping up its presence in the crypto space by expanding its Paxos-powered stablecoin, PYUSD, to the Arbitrum blockchain. Alongside this expansion, the payment giant has introduced a new rewards program designed to offer passive yield to PYUSD holders.
The PYUSD stablecoin, which was previously available on the Ethereum (ETH) and Solana (SOL) networks, now includes Arbitrum (ARB) as a supported blockchain. This move aims to broaden the accessibility and utility of PYUSD within the decentralized finance (DeFi) ecosystem.
In an update to its cryptocurrency terms and conditions, PayPal announced the PYUSD Rewards Program. This initiative allows users to earn rewards simply by holding PYUSD in their Cryptocurrencies Hub. To be eligible, users must hold at least 1.0 PYUSD.
Rewards will accrue daily based on an annual “PYUSD Rewards Rate.” This rate is applied to the average daily balance of PYUSD held by the user throughout the month. Accumulated rewards will be credited to the user’s Cryptocurrencies Hub at the beginning of each month, or within 30 days thereafter. Users have the flexibility to opt out of the program at any time.
To participate in the PYUSD Rewards Program, users must have a Cryptocurrencies Hub account in good standing, free of negative balances, holds, limitations, or restrictions. Business Cryptocurrencies Hub accounts are also eligible under similar conditions.
PayPal clarified that PYUSD is issued by Paxos, meaning the stablecoin operates under Paxos’s terms and conditions, not PayPal’s. The payment firm also noted that while it may choose to cease supporting PYUSD as a crypto asset with prior notice, it is not obligated to do so. In such an event, users would be required to sell or transfer their PYUSD tokens to an external digital asset wallet.
This expansion and rewards program come as PayPal continues to deepen its involvement in the global payments landscape, with plans to further integrate PYUSD for international transactions in 2025.
