PayPal’s U.S. dollar-backed stablecoin, PYUSD, is taking a major step toward broader adoption with its expansion to several new blockchains, thanks to a partnership with interoperability protocol LayerZero.
PYUSD Reaches More Blockchains
Launched in 2023 and issued by Paxos Trust Company, PYUSD was initially available only on Ethereum, before expanding to Solana, Arbitrum, and most recently Stellar. Now, through LayerZero’s Stargate Hydra bridge, PayPal is introducing a new permissionless version of the token called PYUSD0 to seven additional networks: Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron.
Existing bridged versions of the token on Berachain (BYUSD) and Flow (USDF) will also upgrade to PYUSD0.
What PYUSD0 Means for Users
LayerZero explained that PYUSD0 is fully fungible and interoperable with native PYUSD. Holders can redeem PYUSD or PYUSD0 at a one-to-one rate for U.S. dollars, no matter which supported chain they use.
The rollout builds on a November integration where PYUSD adopted LayerZero’s omnichain fungible token (OFT) standard, enabling smooth transfers between Ethereum and Solana. That update was designed to eliminate liquidity fragmentation and give users more control by allowing them to move PYUSD between chains without relying on centralized services such as PayPal or Venmo.
Growing but Still Small
PYUSD’s circulating supply currently stands at 1.9 billion, according to The Block — a fraction of the size of market leaders Tether (USDT) and Circle’s USD Coin (USDC). Still, PayPal sees expansion as key to driving adoption.
David Weber, head of ecosystem for PayPal USD, said the collaboration with LayerZero would allow PYUSD to “reach new markets faster while maintaining compliance and composability from day one.”
Tether has also adopted LayerZero’s technology with its own omnichain version, known as USDT0, signaling a broader trend toward cross-chain stablecoins.
PayPal’s Broader Push in Payments
Beyond stablecoins, PayPal is also doubling down on payments innovation. Earlier this week, it introduced PayPal Links, a feature that lets users send or request money using personalized links. The company confirmed crypto support is coming soon, with plans to integrate bitcoin, ether, PYUSD, and more across PayPal, Venmo, and third-party wallets.
