PayPal launches PYUSD rewards program and expands into Arbitrum

PayPal’s Paxos-powered stablecoin, PYUSD is offering rewards for holders who hold at least 1 PYUSD in their Cryptocurrencies Hub. The stablecoin has also launched on the Arbitrum chain.

According to the latest update on the payment firm’s cryptocurrency terms and conditions, the PYUSD (PYUSD) stablecoin is now available on the Arbitrum (ARB) chain alongside the Ethereum (ETH) and Solana (SOL) networks. So far, the three networks fall under the “PYUSD supported blockchains.”

In addition, the payment firm also stated that PYUSD now has a rewards program that users can take part in. Participants of the PYUSD Rewards Program will be able to accumulate PYUSD rewards from the amount of stablecoins they hold. As long as the user holds at least 1.0 PYUSD, then they stand a chance of receiving passive yield.

PYUSD rewards will be accrued on a daily basis in the form of PYUSD at the applicable “PYUSD Rewards Rate”, which is an annual rate of rewards earned on PYUSD held in the user’s Cryptocurrencies Hub.

“To calculate your PYUSD Rewards, we 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,” wrote PayPal in its statement.

The rewards will be credited to the user’s Cryptocurrencies Hub at the beginning of each month or within 30 days after the start of the month. Users have the option to opt-out from the reward program at any time and they will stop receiving credited yield.

PayPal’s eligibility terms for the PYUSD Rewards programme

In order to be eligible to receive PYUSD rewards, the user must own a Cryptocurrencies Hub account without a negative balance. The user’s balance account also must not have any funds on hold, limitations or restrictions.

Holders of a Business Cryptocurrencies Hub may also participate in the PYUSD Rewards Program, as long as the account does not have a negative balance or any of the aforementioned restrictions that apply for a regular Cryptocurrencies Hub.

In the blogpost, the U.S.-based payment firm also warned users that PYUSD is issued by Paxos. Therefore, it follows the terms and conditions linked to Paxos, not PayPal. Meanwhile, the payment firm may choose to stop supporting the USD-pegged stablecoin at any time with prior notice.

However, it is not obligated to provide users with a notice to terminating support of PYUSD as a Crypto Asset.

“You 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,” wrote the payment firm in its statement.