PayPal is significantly expanding the reach of its dollar-backed stablecoin, PYUSD. Issued by Paxos Trust Company in 2023 and initially launched on Ethereum, PYUSD quickly expanded to Solana, Arbitrum, and Stellar. Now, thanks to the LayerZero integration, it is available on nine more blockchains.
The new integration creates a permissionless version of PYUSD, dubbed "PYUSD0." This version, operating via LayerZero's Stargate Hydra bridge, will have exactly the same functionality as the original PYUSD. Whether users use the native PYUSD on Ethereum, Solana, or Stellar, or PYUSD0 on LayerZero-supported chains, the token is 1:1 exchangeable with US dollars and will be considered the same stablecoin.
What are the new networks?
The expanded networks include Tron, Avalanche, Sei, Aptos, Abstract, Ink, and Stable. Previously issued by the community, Berachain (BYUSD) and Flow (USDF) will also be upgraded to PYUSD0. This will bring PayPal's stablecoin to not only a few major chains but also rapidly growing new ecosystems.
This move follows PayPal's LayerZero collaboration launched last year. At the time, PYUSD adopted LayerZero's omnichain token standard, enabling transfers between Ethereum and Solana without the need for centralized platforms. Now, this feature is being expanded to a wider audience.
The current circulating supply of PayPal USD is approximately $1.9 billion. This figure is significantly lower than Tether's $171 billion USDT or Circle's $74 billion USDC. However, given the rapid growth of the stablecoin market across the industry, PayPal's actions are expected to give it a significant strategic position in the long term. The US Treasury Department predicts that the stablecoin market could reach $2 trillion by 2028. LayerZero Labs CEO Bryan Pellegrino emphasized that the integration is not just a technical advancement but also a strong sign of the future of the financial system. According to Pellegrino, stablecoins will be the cornerstone of a borderless, 24/7 global financial market.
David Weber, CEO of the PayPal ecosystem, said, “By working with LayerZero, we are bringing PYUSD to new markets faster. We are maintaining both compatibility and cross-chain interoperability from the start.”
This week, the company also introduced a new peer-to-peer payment feature called “PayPal Links.” This system, which will allow users to easily send payments through personal connections, is planned to integrate Bitcoin, Ethereum, PYUSD, and other assets soon. This will support PayPal’s stablecoin strategy not only with blockchain integrations but also with everyday payment solutions.
