Chiara Bianchi
PayPal’s stablecoin, PayPal USD (PYUSD), is broadening its reach across the crypto ecosystem. Through a new collaboration with LayerZero’s Stargate Hydra bridge, PYUSD will now operate on additional blockchains including Tron, Avalanche, Sei, Aptos, and others.
Originally launched in 2023 on Ethereum by Paxos Trust Company, PYUSD has since been deployed on Solana, Arbitrum, and Stellar. With this latest rollout, a permissionless version called “PYUSD0” will extend support to seven more networks: Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. Existing bridged versions on Berachain (BYUSD) and Flow (USDF) will also transition to PYUSD0.t
According to LayerZero, PYUSD0 is fully fungible and interoperable with native PYUSD. In practice, this means whether users hold PYUSD on Ethereum, Solana, or PYUSD0 across LayerZero-supported chains, the stablecoin remains the same and is redeemable 1:1 for U.S. dollars.
The expansion builds on last November’s adoption of LayerZero’s omnichain fungible token (OFT) standard, which allowed PYUSD to move seamlessly between Ethereum and Solana. That upgrade eliminated liquidity silos and gave self-custodial users the ability to transfer PYUSD without relying on centralized services like Venmo or PayPal.
Competition Among Stablecoins
While PYUSD has reached a circulating supply of 1.9 billion tokens, it remains relatively small compared to Tether (USDT) and Circle’s USDC. Still, PayPal’s growing push suggests it aims to position PYUSD as a serious contender in the stablecoin market. Interestingly, Tether has already launched an omnichain version of USDT (USDT0) using LayerZero’s technology.
PayPal’s Broader Crypto Vision
David Weber, head of PayPal USD’s ecosystem, emphasized that the LayerZero partnership enables the stablecoin to reach new markets faster while ensuring compliance from the start.
In addition, PayPal is expanding its payment offerings. Earlier this week, the company unveiled PayPal Links, a feature that allows users to send and receive funds through personalized links. The tool will soon integrate crypto payments, supporting Bitcoin, Ethereum, PYUSD, and other assets across PayPal, Venmo, and compatible wallets worldwide.
