PayPal’s PYUSD stablecoin has expanded to the Arbitrum network, becoming the first layer-2 blockchain integration for the dollar-pegged cryptocurrency. This move aims to reduce transaction costs and improve processing speeds.
A July 15 update to PayPal’s cryptocurrency terms and conditions shows that PYUSD is now supported on the Arbitrum network alongside its previous availability on the Ethereum and Solana blockchain networks. The update indicates that transfers will be lower-end capped to a minimum of one PYUSD, with weekly purchase limits set at $100,000 and weekly send limits restricted to crypto assets totaling the equivalent of $25,000.
Arbitrum Becomes PYUSD’s First L2 Partner
Launched in 2023, PYUSD is a fully-backed 1:1 stablecoin pegged to the US dollar. It provides seamless connectivity to the PayPal and Venmo networks allowing users to buy, sell, and hold it without incurring transaction fees or requiring external connectivity.
PYUSD’s expansion to Arbitrum marks the stablecoin’s first integration with a layer-2 blockchain technology. While no official press announcement has been made by PayPal or Paxos as of the time of this article’s publication, the update to PYUSD’s terms and service agreement were quickly noticed by the crypto community.
PayPal is bringing PYUSD to Arbitrum.
After $ETH and $SOL, the payments giant is now using Layer 2 tech.
Why it matters:
– $ARB is the third network for PYUSD
– $PYUSD is backed by U.S. Treasuries
– L2s are going from crypto-native to real-world use$ARB is still down 80% from… pic.twitter.com/kJMaZqcuP0— Wise Advice (@wiseadvicesumit) July 16, 2025
In the wake of the spreading news, Arbitrum has seen a price increase of more than 10% according to data from CoinMarketCap.
Adding the Arbitrum L2 blockchain to PYUSD’s host networks could serve to lower overhead gas fees and cut transaction times in comparison to the previous integrations with Ethereum and Solana networks, thus increasing the potential for broadening collaborations throughout the cryptocurrency and digital assets community.
As Coinspeaker reported in February, PayPal began a broader push for mass adoption of the stablecoin throughout 2025. Michelle Gill, PayPal’s general manager for small business and financial services group, shared plans to seek PYUSD integration with 20 million small and medium-sized businesses as part of this strategy in interviews. This integration could serve as a catalyst for further industry adoption.
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