PYUSD Goes Multichain: PayPal’s Stablecoin Charges Into Arbitrum’s Layer 2 Arena

PayPal just fired the latest shot in the stablecoin wars—deploying PYUSD on Arbitrum's blazing-fast Layer 2 network. Traders win with near-zero gas fees, while Wall Street still struggles to explain what a 'rollup' is.

The move signals PayPal's bullish bet on Ethereum scaling solutions. No more Mainnet gridlock—just cheap, instant settlements for PYUSD holders.

Funny how traditional finance needs 3 business days to move money, while Arbitrum finalizes transactions before bankers finish their Starbucks orders.

TLDR

• PayPal brings PYUSD to Arbitrum for faster, cheaper crypto transactions.
• PYUSD expands to Layer 2 via Arbitrum, boosting PayPal’s blockchain push.
• Arbitrum adds PYUSD, driving stablecoin growth and lower gas fees.
• PayPal’s PYUSD hits Arbitrum, enhancing utility across three networks.
• PYUSD joins Arbitrum, helping PayPal scale crypto for small businesses.

PayPal has expanded its U.S. dollar-pegged stablecoin, PYUSD, to the Arbitrum blockchain. The update appears in the company’s cryptocurrency terms and conditions as of July 15. This marks the first integration of PYUSD with a Layer 2 network.

🚨 BREAKING: PayPal’s PYUSD is now live on Arbitrum.

PYUSD just surged to the top of the trending assets list, and it’s no coincidence.

This MOVE is powered by @arbitrum $ARB is becoming the go-to platform for stablecoin expansion.

DYOR pic.twitter.com/bKvCJzWCNM

— CryptoBusy (@CryptoBusy) July 16, 2025

The move brings PYUSD to Ethereum, Solana, and now Arbitrum, increasing its availability and flexibility across key blockchain ecosystems. Arbitrum, built on Ethereum, offers faster and cheaper transactions by operating as a scaling solution. This integration could help lower costs for users while enabling quicker transfers and broader utility.

PayPal did not issue a formal announcement, but its updated service terms confirm the token’s deployment across all three supported networks. The terms now list Arbitrum under supported chains for PYUSD, along with new transaction and purchase limits. Transfers are now capped at a minimum of one PYUSD, with weekly purchase limits of $100,000 and send limits of $25,000.

PYUSD Step Toward Broader Blockchain Expansion

PYUSD launched in August 2023 through a partnership with Paxos and is fully backed 1:1 with U.S. dollars. The token allows users to buy, sell, hold, and transfer within PayPal and Venmo without additional fees. Expanding to Arbitrum enhances its reach while aligning with PayPal’s long-term blockchain strategy.

PayPal aims to connect 20 million small businesses to PYUSD as part of its 2025 adoption roadmap. Integrating a Layer 2 network like Arbitrum supports that push by reducing transaction friction. Businesses using the token can now access cheaper and faster payments compared to ethereum mainnet.

This transition also positions PayPal within the evolving stablecoin landscape, where competitors continue to launch on scalable networks. While Ethereum remains dominant, the move toward Layer 2 reflects the growing preference for cost-efficient infrastructure. PYUSD’s support on Arbitrum provides a competitive edge in terms of utility and cost savings.

Arbitrum Gains Momentum With Stablecoin Support

Arbitrum’s inclusion as a host network for PYUSD boosts its growing role in decentralized finance infrastructure. The LAYER 2 network is known for low gas fees and higher transaction speeds, making it attractive for token issuers. Its compatibility with Ethereum ensures security while increasing network throughput.

The news coincided with a price jump in Arbitrum’s native token, ARB, which rose over 10% following the update. Market participants responded to the development as a strong sign of growing use cases for Arbitrum. While PayPal remained silent publicly, the crypto community quickly picked up on the change.

Arbitrum also recently partnered with Robinhood for tokenized equity services, signaling expanding interest from major financial platforms. With PYUSD now live on the network, Arbitrum gains another key asset in its ecosystem. This integration may attract more stablecoin-related applications seeking speed and affordability.