PayPal’s stablecoin, PYUSD, just got a major upgrade. Not only has the token expanded to a new blockchain, but holders can now earn rewards simply by holding it making PYUSD more appealing than ever for users looking to earn passive yield.
PYUSD Now Live on Arbitrum
In a recent update to its cryptocurrency terms and conditions, PayPal announced that PYUSD is now live on the Arbitrum network, joining Ethereum and Solana as supported blockchains. This expansion gives users more flexibility to use and move their stablecoins across faster and cheaper networks something that crypto users increasingly value.
Now, Ethereum, Solana, and Arbitrum officially make up the “PYUSD supported blockchains”, giving the stablecoin broader reach within the crypto ecosystem.
Earn Rewards by Simply Holding PYUSD
PayPal also introduced the PYUSD Rewards Program, allowing users to earn passive income just by holding at least 1.0 PYUSD in their Cryptocurrencies Hub.
Here’s how it works:
- Rewards are calculated daily based on your average PYUSD balance.
- The reward rate is expressed as an annual percentage yield (APY) and is divided into daily accruals.
- At the beginning of each month (or within 30 days of month-start), PayPal will credit the earned PYUSD directly to your account.
You can opt out of the program at any time, but once you do, you’ll stop receiving the rewards.
Who’s Eligible?
To take part, you’ll need to meet a few basic conditions:
- You must have a Cryptocurrencies Hub account with a positive balance.
- Your account must be free of holds, restrictions, or limitations.
- Business accounts are also eligible so long as they meet the same criteria.
Important Caveats to Know
PayPal was also clear about the legal side of things. While PYUSD is promoted and supported through PayPal, it’s issued by Paxos, meaning it follows Paxos’ terms and conditions.
PayPal also noted that it reserves the right to stop supporting PYUSD at any time. While they generally plan to give users advance notice, they are not obligated to do so. If support is discontinued, users will be required to sell or transfer their PYUSD to another wallet.
“You must sell or transfer to an external digital asset wallet any PYUSD token in your Cryptocurrencies Hub that PayPal has communicated it will no longer support,” the firm stated.
The Bottom Line
PayPal’s stablecoin strategy just took a big step forward with the introduction of passive yield rewards and multi-chain availability. For users already holding PYUSD or thinking about it this could be a smart move toward making their stablecoins work harder for them.
With more integrations likely on the horizon, PayPal is clearly positioning PYUSD as more than just a digital dollar it’s aiming to become a staple in both payments and DeFi.
