US-based fintech company PayPal is expanding the reach of its PYUSD stablecoin by integrating it with the Arbitrum network. The move aims to reduce transaction fees and speed up processing times for users.
Launched in 2023, PYUSD is a US dollar-backed stablecoin issued by PayPal. Its stable value makes it a more predictable option for payments and transfers. The stablecoin is now expanding to Arbitrum, a network that promotes lower fees and quicker processing.
PYUSD Expands to Arbitrum
Currently, PYUSD operates on the Ethereum network, which is often associated with congestion and elevated transaction fees. As a result, sending PYUSD can cost users several dollars per transaction.
To address these challenges, PayPal is expanding support for PYUSD to the Arbitrum network. As a layer-2 solution built on Ethereum, Arbitrum is designed to handle transactions more efficiently. This helps to reduce costs and processing times.
Notably, the integration will allow users to send, receive, and use PYUSD on Arbitrum, potentially making it more practical for everyday payments, peer-to-peer transfers, and interactions with decentralized applications (dApps).
PayPal Launches PYUSD Rewards
Following its expansion to the Arbitrum network, PayPal is also introducing a rewards program for PYUSD holders. This program allows users to receive a passive yield based on the amount of PYUSD they hold.
To qualify, a user must hold at least 1.0 PYUSD in their PayPal Cryptocurrencies Hub account. The account must also be in good standing, with no restrictions, holds, or negative balances.
PYUSD rewards will be calculated daily using an annual rate known as the “PYUSD Rewards Rate.” PayPal will divide this rate by 365 and apply the result to the average daily balance.
Accrued rewards will be credited in PYUSD to users’ Crypto Hub at the start of each month or within 30 days. Users can opt out of the program at any time and stop receiving these credited amounts.
Through both the Arbitrum launch and the rewards initiative, PayPal is placing more emphasis on usability and practical functionality for its stablecoin.
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