PayPal’s stablecoin, PYUSD, which is indexed to the US dollar at a 1:1 ratio, is now supported on the Ethereum 
$1,874 Layer-2 network, Arbitrum. This development was highlighted in PayPal’s cryptocurrency terms of use updated on July 16. Previously issued by Paxos, PYUSD was available on Ethereum and Solana 
$73 networks. However, it has now found a place on the Arbitrum network as well. The latest “Transaction Limits” table also references PYUSD-Arbitrum transactions, indicating this addition.
Arbitrum Support Quietly Emerges in Terms
Within the section titled “PYUSD Stablecoin” for its users, PayPal officially marked the transition to Arbitrum on July 16. This update preceded a list that included only Ethereum and Solana networks. Wayback Machine records show the inclusion of this detail in just five days, subtly introduced within the guidelines.
The same revision also discreetly adjusted tables showing PYUSD transfer limits. Although PayPal did not specify particular limitations for Arbitrum transactions, the integration clearly confirms the network’s incorporation into the company’s infrastructure. A formal announcement on the website has yet to be shared by PayPal.
Following Paxos’ 2024 Arbitrum Launch
When PYUSD was launched on the Ethereum network in August 2023, PayPal CEO Dan Schulman emphasized the role of stablecoins as a “bridge to stable value in cryptocurrency payments.” The stablecoin, underpinned by Paxos, follows a full reserve model. It maintains a 1:1 ratio with USD deposits, short-term Treasury bills, and cash equivalents.
In May 2024, the Solana integration capitalized on its high transaction capacity per second, leading to PYUSD’s wider application in individual payments. Paxos followed suit by moving its tokenization platform to Arbitrum in September 2024, opening doors to the Layer-2 ecosystem. Consequently, PayPal’s recent update represents a natural extension of a previously charted technical roadmap.
