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.