Paypal’s PYUSD Adds Arbitrum Support, ARB Price Jumps Over 7%

• PayPal quietly added Arbitrum support for PYUSD, boosting faster and cheaper transactions on the Layer-2 network.
• The ARB token jumped 7.7% after PayPal listed Arbitrum among supported networks for its PYUSD stablecoin.

Digital payment giant PayPal has quietly added the Arbitrum network as one of the supporting infrastructures for its flagship stablecoin, PYUSD. This information was first revealed through an update to PayPal’s terms and conditions page in mid-July.

Although there has been no official announcement, Arbitrum’s name is already listed on the list of PYUSD-supported networks, alongside Ethereum and Solana.

Arbitrum Boosts PYUSD Efficiency, But Liquidity Risks Remain

Arbitrum’s inclusion as PYUSD’s new home is clearly not a decision taken lightly. With a Layer 2 structure built on Ethereum, Arbitrum offers lower transaction fees and significantly faster speeds than Layer 1 networks. For PayPal users looking to send or receive stablecoins without long waits or exorbitant fees, this is certainly welcome news.

The market immediately reacted. The price of ARB—the native token of the Arbitrum network—rose 7.7% in just 24 hours after the news broke. But not only that, transaction volume also surged, increasing by a staggering 495%. However, its turnover ratio, which remains at 0.275, could be a warning sign of potential liquidity constraints, especially if this surge is merely a temporary surge.

This isn’t the first time PayPal has shown its blockchain ambitions. Previously, the CNF noted that the company is also exploring integrating PYUSD into the Stellar network. The goal is similar: speed up transaction processing and keep costs as low as possible. While Arbitrum operates on Ethereum’s Layer-2 platform, Stellar is known for its fast and efficient cross-border transfer capabilities.

PayPal Pushes PYUSD Utility Beyond Storage with Incentives

On the other hand, PayPal doesn’t seem satisfied with simply providing infrastructure. The company has also been trying to attract more users to actually use PYUSD in their daily lives. How? Offering an annualized yield of 3.7% since last April. The goal is clear: not just storing stablecoins, but using them for payments, transfers, and other transactions.

In hindsight, this is like trying to make stablecoins feel as practical as traditional electronic money—but with the advantages of decentralization and the efficiency of a blockchain network. Moreover, now with the arrival of Arbitrum, PYUSD could be more reasonable for small transactions, without having to worry about emptying your wallet due to gas fees.

PayPal also implemented a weekly transaction limit on Arbitrum. This might sound inconvenient, but it’s understandable. As a major player with a big name, they clearly don’t want to be careless. This could be a kind of initial test run before they finally open the floodgates.

One thing is increasingly clear: PayPal isn’t playing around with its stablecoin project. The entry of Arbitrum and Stellar so close together indicates they are laying a broad and flexible foundation. Will they also expand to other networks like Avalanche or Base in the future? Possibly. But for now, users have more options, and PYUSD is increasingly poised to become a significant player in the global stablecoin competition.