Arbitrum’s native token (ARB) saw a notable jump on Wednesday, gaining 7.7% in 24 hours, after PayPal’s cryptocurrency terms quietly listed the Ethereum Layer 2 network as a supported blockchain for its PYUSD stablecoin. The move sparked widespread speculation that Arbitrum may be the next network to host PayPal’s $850 million stablecoin.
PayPal Lists Arbitrum as PYUSD-Compatible Chain
While no official partnership announcement has been made, PayPal’s updated crypto terms now state that its stablecoin, PYUSD, is supported on three networks: Ethereum, Solana, and Arbitrum. The listing puts Arbitrum in a prestigious lineup and raises expectations that deployment of PYUSD on Arbitrum could be imminent.
“PYUSD is issued by Paxos, not PayPal, on each of the Ethereum, Solana, and Arbitrum cryptocurrency networks,” reads the policy page.
Notably missing from the updated terms is Stellar (XLM), which had previously been confirmed by PayPal as a planned addition. This omission further fuels attention toward Arbitrum as the next likely expansion venue for PYUSD.
Why It Matters for Arbitrum and ARB
Arbitrum is one of the most widely used Layer 2 scaling solutions on Ethereum, offering lower transaction fees and faster settlement without compromising Ethereum’s security. Being named as a supported chain for a major fintech player like PayPal strengthens Arbitrum’s position in the real-world adoption race for Layer 2 networks.
With over $2.6 billion in total value locked (TVL) and a growing developer ecosystem, Arbitrum is already a key player in Ethereum’s scalability roadmap. The addition of PYUSD could further boost user activity, transaction volume, and institutional confidence.
The price of ARB responded positively, rising 7.7% over 24 hours and outpacing Bitcoin (BTC) and Ethereum (ETH), which saw more modest gains.
Broader Adoption Signals
This isn’t the first time Arbitrum has been linked to institutional interest. Just last month, Robinhood selected Arbitrum to build its tokenized equity platform, leveraging the network’s scalability and developer flexibility.
The continued alignment of major fintech and trading platforms with Arbitrum reflects a broader trend: Layer 2 solutions are moving from niche DeFi infrastructure into mainstream financial systems.
Conclusion
While PayPal and Paxos have yet to confirm whether PYUSD is live or soon launching on Arbitrum, the market reaction and terms listing send a strong signal. If confirmed, Arbitrum could see increased stablecoin liquidity, higher usage, and more institutional integrations, all of which support a bullish case for the ARB token.
Investors and developers alike will be watching closely to see whether official deployment follows — and how it could reshape the stablecoin landscape across Ethereum’s L2 ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.