PayPal USD Expands to Arbitrum, Bringing Layer 2 Efficiency to Multi-Chain Development Stack

San Jose, Calif., July 17, 2025 – Today, PayPal announced that it is expanding PayPal USD (PYUSD) onto Layer-2 blockchains starting with Arbitrum. This deployment provides developers with their first Layer 2 option for PYUSD integration, combining the stablecoin’s established reliability with Arbitrum’s low-cost, high-throughput transaction processing.

By deploying PYUSD onto Arbitrum, developers will be able to seamlessly expand smart contract deployment from Ethereum mainnet to Arbitrum without rewriting code, allowing for easy migration of dApps while also providing developers with Ethereum-compatible tooling, and  established DeFi protocols. Additionally, Arbitrum supports transparent, on-chain governance, making protocol upgrades and decision-making accessible while leveraging Ethereum’s security model for scalability and data availability. 

“A key to any cryptocurrency’s success is a robust developer ecosystem, but to encourage developers into the community, we must give them the tools they need to build and deploy wherever they wish,” said May Zabaneh, Vice President of Product, PayPal. “Whether they need Ethereum’s maximum security and deep liquidity, Solana’s high throughput and low latency, or Arbitrum’s Ethereum compatibility with Layer 2 efficiency, developers can now deploy PYUSD-powered applications on the blockchain that best fits their technical requirements.”

Additionally, this deployment comes at a pivotal moment as businesses worldwide seek alternatives to more traditional payment processors due to the high costs associated with transactions. PYUSD’s expansion to Arbitrum represents a milestone in the stablecoin’s evolution, bringing Layer 2 efficiency to payment applications for the first time and providing:

• Near Instant Settlement at Scale: Transactions on Arbitrum process in seconds, enabling near real-time payment experiences that maintain the transparency and programmability of blockchain technology.
• Micropayment Viability: With transaction costs typically under one cent, PYUSD unlocks potential use cases including content micropayments, usage-based billing, and instant rewards distribution that would be economically unfeasible on other networks.
• Enterprise-Grade Reliability: Arbitrum’s proven track record of uptime and growing total value locked of over $2.5 billion demonstrates the network stability required for mission-critical payment applications.

Arbitrum’s optimistic rollup technology allows PYUSD to enable transactions that settle in seconds rather than minutes, and with fees typically under $0.01 compared to Ethereum mainnet’s often prohibitive costs. While PYUSD already provides stable value transfer on Ethereum and Solana, deploying on Arbitrum continues to advance the company’s mission of revolutionizing commerce and bringing new technologies into the mainstream.

As PYUSD expands beyond Ethereum and Solana into this initial Layer 2 blockchain, Arbitrum serves as a foundation for future expansion to additional scaling solutions.

 

IMPORTANT DISCLOSURES

This press release is for informational purposes only and is not intended as financial, investment, or other advice. The use and exchange of digital assets, including stablecoins such as PYUSD, may involve complex risks, including but not limited to:

• Network & Custody Risks: Transactions on blockchains – and the blockchains themselves – are subject to a range of operational, technological, and security risks. Users are responsible for safeguarding their private keys and/or working with reputable custodians/wallet providers; loss of access may lead to the permanent loss of funds.
• Third-Party Reliance: Digital assets rely on third-party blockchain software and network infrastructure. Neither PayPal nor Paxos Trust Company, LLC (“Paxos”) has control over blockchain networks and is not liable for any blockchain’s performance, security, or ongoing availability.
• Redemption and Market Risk of Fiat-Backed Stablecoins: U.S. dollar-backed stablecoins that are regulated by the New York State Department of Financial Services are designed to maintain a stable value of one U.S. dollar per token. Individuals or entities with direct redemption access via PayPal, Paxos or authorized partners are guaranteed to convert PYUSD 1:1 for US dollars. All other parties may be limited to selling PYUSD at market prices.
• Regulatory Uncertainty: Regulatory frameworks for digital assets are evolving. Availability or legality of digital asset services may change without notice, and services may be restricted, suspended, or terminated in certain jurisdictions as required by law or regulation.
• No FDIC/SIPC Protection: Digital assets, including PYUSD, are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
• Terms & Conditions: Use of PYUSD is subject to Paxos and PayPal’s Terms & Conditions, including disclaimers on liability and user responsibilities. Transactions are irreversible once recorded on the blockchain. You are advised to review and understand all applicable terms.
• Service Availability & Illegal Activity: PYUSD and related payment services may be suspended or terminated due to events or investigations involving illegal activity, system failure, or other factors beyond PayPal’s control.
• Forward-Looking Statements: Statements in this press release regarding potential product features, expansion plans, and regulatory outcomes are forward-looking and subject to change. Actual results may differ materially due to known and unknown risks, uncertainties, and other factors.
  
   

About PayPal USD (PYUSD)    

PayPal USD is issued by Paxos Trust Company, LLC, a fully chartered limited purpose trust company. Paxos is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.    

PayPal, Inc. (NMLS ID #: 910457) is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.    

About PayPal   

PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.    

Media Contact:

MediaRelations@paypal.com