In a significant development for the cryptocurrency landscape, PayPal has announced the expansion of its PayPal USD (PYUSD) stablecoin across eight additional blockchains. This initiative includes a strategic integration with LayerZero’s Stargate Hydra bridge, which facilitates permissionless transactions for PYUSD.
According to LayerZero’s statement released on Thursday, the new version of PayPal USD — referred to as PYUSD0 — will be fully fungible and compatible with the existing PYUSD. This update will allow for seamless interoperability across several blockchains, deepening the stablecoin’s accessibility and functionality in the crypto space.
The newly supported blockchains include Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable. Moreover, the permissionless versions currently operating on Berachain (denoted as BBYUSD) and Flow (known as USDF) are set to transition to the PYUSD0 standard. In a separate integration also announced on Thursday, PYUSD has been extended to the Stellar blockchain, enhancing its reach further.
LayerZero’s Stargate Hydra will function as the transfer interface for PYUSD0, utilizing LayerZero technology for the minting, burning, and overall deployment processes related to PYUSD0. This expansion builds on PayPal’s prior support for Ethereum, Solana, and Arbitrum, positioning PYUSD as one of the most comprehensive and accessible stablecoins available in the market today.
This move comes at a crucial time as the cryptocurrency stablecoin market is projected by the US Treasury to grow from its current valuation of $295 billion to $2 trillion by 2028. The momentum for stablecoin adoption has also been further propelled by the recent signing of the GENIUS Act by US President Trump, touted as one of the most thorough pieces of legislation concerning stablecoins to date.
Despite the advancements with PYUSD, PayPal remains a newcomer in the competitive stablecoin arena, trailing behind established leaders such as Tether (USDT) and Circle (USDC). Current market data from CoinGecko reveals that Tether commands a market capitalization of approximately $171.2 billion, while USDC has a market cap of around $74.3 billion. In contrast, PYUSD is currently ranked 11th, valued at $1.3 billion.
LayerZero Labs’ CEO, Bryan Pellegrino, emphasized the significance of integrations like PayPal’s, stating, “We are at the start of a global financial market that breaks down borders and works around the clock.” He highlighted how this integration enhances financial experiences by leveraging modern technology, allowing users who self-custody PYUSD to easily transfer it between blockchains without relying on traditional banking systems.
The new addition of PYUSD to the Stellar blockchain is noteworthy as it serves as a low-fee platform with rapid transaction finality. The Stellar network has seen growing usage from individuals in developing regions looking to save and transact in US dollars, further substantiating the need for accessible and efficient stablecoin solutions.
PYUSD, which was launched by PayPal in August 2023 in partnership with Paxos, is quickly evolving as a pivotal asset in the digital finance ecosystem, catering to the rising demand for robust and versatile stablecoin applications. With the recent integration across multiple chains, PYUSD is poised to broaden its influence and appeal within the crypto community.
