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PayPal Stablecoin PYUSD Hits Nine New Networks, Boosting Corporate and DeFi Access
PayPal’s U.S. dollar-pegged stablecoin, PYUSD, is making its biggest expansion yet, moving beyond its native networks through a new integration with LayerZero’s interoperability framework. The rollout introduces a permissionless version of the token, PYUSD0, to nine additional blockchains, including Tron, Avalanche, and Sei, marking a major step in the company’s digital asset strategy.
Breaking Liquidity Silos with Cross-Chain PYUSD
Initially issued by Paxos Trust Company, PYUSD was limited to Ethereum, Solana, Arbitrum, and Stellar. The new permissionless version, PYUSD0, now extends access to Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, while community deployments on Berachain and Flow will automatically upgrade.
All versions remain redeemable 1:1 for U.S. dollars, ensuring fungibility across ecosystems. The integration leverages Stargate, a cross-chain bridge that connects over 80 blockchains. LayerZero, which acquired Stargate last month, applied its Hydra model to bring PYUSD seamlessly to the expanded networks.
“By working with LayerZero, we can deliver stable value seamlessly to new markets while preserving compliance from the start,” said David Weber, head of ecosystem for PayPal USD.
Stablecoin Competition Heats Up
The move comes as competition intensifies in the $270 billion stablecoin market, dominated by Tether’s USDT and Circle’s USDC. According to CoinGecko, PYUSD recently hit a record $1.3 billion market capitalization, still far behind Tether’s $171 billion and Circle’s $74 billion.
Despite its smaller footprint, PYUSD is gaining traction among corporations. An EY-Parthenon survey found 36% of corporate respondents already use PYUSD, putting it ahead of rivals such as Ethena’s USDe and Sky Protocol’s USDS. Analysts suggest the latest expansion could accelerate adoption across corporate treasuries and decentralized applications.
PayPal Eyes Tokenized Finance Future
LayerZero Labs CEO Bryan Pellegrino emphasized the broader implications: “The U.S. dollar is the anchor of global finance, and stablecoins are proving to be its most effective digital format. With PYUSD0, we’re showing how borderless money can work in practice.”
Looking ahead, PayPal may leverage its wider distribution to push deeper into crypto services. The firm recently launched PayPal Links, a peer-to-peer payments tool designed to support Bitcoin, Ethereum, and PYUSD. With cross-chain functionality now live, PayPal could solidify its role not only as a fintech leader but also as a key infrastructure provider in the tokenized economy.
