PayPal Extends PYUSD Stablecoin to Multiple Blockchains Using LayerZero

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

PayPal’s stablecoin, the PayPal USD (PYUSD) will now be supported on eight additional blockchains, utilizing LayerZero’s Stargate Hydra bridge for seven of them. This expansion is designed to strengthen PYUSD’s reach and compete more directly with leading stablecoins like USDT and USDC, which continue to dominate the market.

PYUSD0 Version Will Be Fully Fungible

According to PayPal’s official statement, the integration will introduce a new permissionless version of its stablecoin called “PYUSD0.” This token will be fully fungible with PYUSD, meaning both versions can be exchanged freely at equal value and work across multiple blockchains.

PYUSD0 will launch on multiple blockchains such as Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable.

Concurrently, existing permissionless stablecoins on Berachain (BBYUSD) and Flow (USDF) will be upgraded to PYUSD0 to maintain consistency across networks.

The company began laying the groundwork last November, when it adopted LayerZero’s omnichain fungible token (OFT) standard to enable transfers between Ethereum and Solana.

PayPal also revealed in a separate update that PYUSD has been added to the Stellar blockchain, widening the stablecoin’s reach even further.

Furthermore, Stargate Hydra will serve as the bridge for PYUSD0 transfers, while LayerZero will enable the minting, burning, and deployment of the stablecoin across chains.

This would create an efficient pipeline for users to move PYUSD0 across blockchains, without the friction of multiple liquidity pools.

This expansion builds on PayPal’s earlier integrations. PYUSD is already supported on Ethereum, Solana, Arbitrum, and now Stellar, making it one of the most accessible stablecoins in circulation.

Momentum in the stablecoin sector has also been strong this year. In April, the U.S. Treasury projected the $295 billion market could soar to $2 trillion by 2028.

This outlook gained even more weight in July, when President Trump signed the GENIUS Act, described as one of the most comprehensive stablecoin laws yet.

Can PYUSD Compete with USDT or USDC?

For many market observers, the main question is whether PYUSD can compete with the major players in the stablecoin market.

Launched by PayPal in 2023, PYUSD has grown steadily and now holds a market cap of $1.34 billion, which is smaller than major stablecoins like USDT and USDC.

USDT dominates the stablecoin market at $171 billion, while Circle’s USDC stands at $74 billion.

Meanwhile, a report showed that USDC accounts for 63% of all crypto salary payments worldwide.

However, PYUSD has carved out a place of its own despite its smaller footprint, as it ranks among the top stablecoins used by corporations.

A September 2025 survey report by EY-Parthenon revealed that 36% of companies reported using PYUSD. This made the token more popular than Ethena’s USDe and Sky Protocol’s USDS.

PayPal is also pushing hard to grow adoption.

On July 28, the company rolled out Pay with Crypto, a feature that allows U.S. businesses accept payments in over 100 cryptocurrencies, including PYUSD.

Earlier this week, PayPal introduced PayPal Links, a new peer-to-peer tool that allows people to send and receive money through personalized links. Crypto integration is expected soon, including support for Bitcoin, Ether, and PYUSD.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.