In a significant move to enhance its crypto offerings, PayPal has announced the expansion of its PayPal USD (PYUSD) stablecoin to eight additional blockchain networks. This initiative sees PYUSD becoming accessible through a collaboration with LayerZero’s Stargate Hydra bridge, which will facilitate a new, permissionless version of the stablecoin, referred to as PYUSD0.
The newly supported blockchains include Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable. Additionally, existing permissionless iterations of PYUSD on Berachain (denoted as BBYUSD) and Flow (referred to as USDF) will be transitioned to the updated PYUSD0 version. This expansion also comes with the announcement of PYUSD’s integration into the Stellar blockchain.
LayerZero, a prominent crypto infrastructure firm, confirmed that the Stargate Hydra bridge will act as the primary interface for transferring PYUSD0, while also enabling functionalities such as minting, burning, and deployment. This rollout complements PayPal’s previous support for Ethereum, Solana, and Arbitrum, further solidifying PYUSD’s position as one of the most widely accessible stablecoins in the digital currency landscape.
The timing of this expansion coincides with a projected growth in the stablecoin market, with the US Treasury estimating that the current $295 billion market could surge to $2 trillion by the year 2028. Contributing to this momentum was the recent signing of the GENIUS Act by former President Trump, a development seen as a foundational move towards regulatory clarity for stablecoins.
Despite these advancements, PayPal’s PYUSD remains a smaller player in the competitive stablecoin sphere. As per CoinGecko data, Tether (USDT) leads the market with a valuation of approximately $171.2 billion, followed by Circle (USDC) at around $74.3 billion. In comparison, PYUSD ranks lower with a market cap of $1.3 billion, placing it in the 11th position. Notably, USDT operates across 12 blockchains while USDC extends its reach to 25 separate chains.
LayerZero Labs’ CEO, Bryan Pellegrino, emphasized the significance of such strategic integrations, stating, “We are at the start of a global financial market that breaks down borders and works around the clock.” Pellegrino advocated that initiatives like PayPal’s PYUSD integration will provide enhanced financial experiences by leveraging modern technology. He added that users who self-custody their PYUSD will enjoy seamless transfers across multiple blockchains, negating the need for traditional banking methods.
Moreover, the recent addition of PYUSD to the Stellar network is noteworthy. Known for its low transaction fees and rapid five-second finality, Stellar has been favored particularly by users in developing nations looking for reliable means to save in US dollars. This integration is expected to enhance accessibility for individuals in regions where traditional financial systems are less prevalent.
Originally launched in August 2023 in collaboration with Paxos, PYUSD marked PayPal’s significant foray into the world of cryptocurrency. The continued expansion across various blockchain platforms indicates PayPal’s commitment to embracing the rapidly evolving financial technology landscape while offering users a versatile and secure digital stablecoin.
