PayPal has expanded its stablecoin ecosystem by integrating PYUSD with the Arbitrum Layer 2 network, adding to existing support on Ethereum and Solana. This strategic move aims to improve PYUSD’s scalability and interoperability amid rising demand for efficient cross-chain solutions.
An updated terms of service introduces network-specific transaction limitations for PYUSD on Arbitrum, though explicit caps remain undisclosed. The development builds on issuer Paxos’ technical integration with Arbitrum finalized last September, establishing infrastructure for Layer 2 tokenization services.
Market analysts identify the expansion as a competitive play to leverage Arbitrum’s rapidly growing ecosystem, where enhanced throughput and reduced fees could accelerate PYUSD adoption for payments and DeFi applications. The integration positions PayPal to capture institutional interest in multi-chain stablecoin utility.
Industry observers note PYUSD’s deepened blockchain compatibility strengthens its viability against rivals while addressing persistent network congestion challenges through Layer 2 efficiency. The deployment signals PayPal’s continued focus on infrastructure development to support real-world cryptocurrency adoption.