ARB Token Surges as PayPal Website Suggests Potential Arbitrum Support for PYUSD Stablecoin

PayPal (NASDAQ: PYPL) appears to be adding Arbitrum support for its $844 million PYUSD stablecoin alongside Ethereum and Solana, according to updated cryptocurrency terms and conditions published on July 16, 2025.

The page now states: “PYUSD is issued by Paxos, not PayPal, on each of the Ethereum, Solana, and Arbitrum cryptocurrency networks.” This language has led to widespread speculation that Arbitrum could become the next blockchain to support the dollar-pegged asset.

PYUSD, launched in August 2023 via a partnership with Paxos Trust Company, is fully backed by U.S. dollar reserves, cash, and short-term Treasuries, maintaining a 1:1 dollar peg. Arbitrum, a Layer-2 network using optimistic rollup technology, is known for its high throughput and low fees—qualities that align well with PayPal’s ambitions for more efficient digital payments.

The updated terms also outline weekly purchase limits of $100,000 and sending limits of $25,000 for PYUSD transactions, suggesting backend preparations for broader adoption. Unlike Terra’s collapsed UST, PYUSD’s fully collateralized structure boosts market confidence and positions it as a bridge between traditional finance and Web3.

No official announcement has been made by either PayPal or Paxos.

ARB Token Rallies on Market Speculation

The speculation, which began circulating on July 16, drove a 10.37% surge in the ARB token within 24 hours, pushing the price to $0.4395 and outperforming both Bitcoin and Ethereum.

The rally highlights renewed interest in Arbitrum’s potential role in DeFi, where its scalability and lower fees can help address Ethereum’s high costs and congestion—making it a strong candidate for stablecoin integrations.

“Integrating PYUSD into Arbitrum positions PayPal to support lower‑cost payments and potential DeFi integrations in the future,” said Kurt Robson, a London‑based reporter at CCN.

ARB ranked as the third-best performing crypto asset among the top 60 by market capitalization during the period. While PYUSD’s circulating market cap has dropped 17% from its June peak of $1.01 billion, a potential Arbitrum integration is seen as a key catalyst for future ecosystem growth, particularly for developers building dApps around payments and financial services.