PayPal has rolled out a rewards program for its USD-pegged stablecoin PYUSD and expanded the asset’s availability to the Arbitrum blockchain, according to an update in the firm’s cryptocurrency terms and conditions.
PYUSD, which was previously available on Ethereum and Solana, can now also be used on Arbitrum, bringing the total number of supported blockchains to three. This expansion positions PYUSD more competitively among stablecoins seeking multi-chain adoption.
Passive yield now available through PYUSD rewards
Alongside the blockchain expansion, PayPal introduced the PYUSD Rewards Program, allowing users to passively earn PYUSD by simply holding the token in their Cryptocurrencies Hub. The participants with at least 1.0 PYUSD are eligible to accrue rewards, which will be calculated daily at an annualized PYUSD Rewards Rate.
To calculate your PYUSD Rewards, apply a daily periodic rate (the PYUSD Rewards Rate divided by 365) to the average balance of PYUSD you hold during each day of the month.
Accrued rewards are credited monthly, either at the start of the following month or within 30 days of the start date. Users can opt out of the program at any time, after which no further rewards will be distributed.
Eligibility terms and platform disclaimers
To qualify for the rewards program, users must maintain a positive PYUSD balance within their Cryptocurrencies Hub, free from any holds, limitations, or restrictions. Business account holders are also eligible, provided their accounts meet the same criteria.
PayPal emphasized that PYUSD is issued by Paxos, not the payment platform itself. As such, users are subject to Paxos’ terms and regulatory obligations. While PayPal may discontinue support for PYUSD with advance notice, it is not legally bound to provide one. In such cases, users are required to sell or transfer their holdings to an external digital wallet.
Users 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.
With the addition of passive yield and broader chain support, PayPal continues to deepen its presence in the digital asset ecosystem, positioning PYUSD as a more versatile stablecoin in the Web3 space.