PayPal Expands PYUSD Stablecoin to 9 Blockchains via LayerZero

PayPal’s ambitious expansion of its PYUSD stablecoin represents a significant leap in the company’s blockchain strategy. The integration extends beyond its native platforms on Ethereum, Solana, Arbitrum, and Stellar to include nine additional blockchains: Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. This multi-chain approach, facilitated by the newly introduced PYUSD0 token, enables seamless cross-chain transfers without requiring user action, as both PYUSD and PYUSD0 remain entirely fungible and redeemable 1:1 for U.S. dollars.

The expansion strategically targets high-throughput networks like Tron, which processes approximately nine million transactions daily and hosts over 332 million accounts, representing a substantial opportunity for PayPal to capture market share. By extending PYUSD’s availability to more than 140 supported blockchains, PayPal gains faster access to new markets while providing developers with a regulated, PayPal-branded stablecoin for application integration.

The technical backbone of this expansion relies on LayerZero’s Omnichain Fungible Token (OFT) standard and Stargate Hydra model, a framework designed to extend assets from a hub blockchain to spoke blockchains. With LayerZero’s recent acquisition of Stargate, the Hydra model now directly facilitates PYUSD availability across multiple networks. Paxos continues as the issuer of the stablecoin, ensuring it remains fully backed by U.S. dollars, while Stargate functions as the interface for value transfer and LayerZero serves as the rail for cross-chain distribution.

This infrastructure eliminates traditional barriers to cross-chain transfers, allowing users to move PYUSD across networks without slippage or reliance on centralized banking infrastructure. LayerZero’s interoperability enables holders of PYUSD0 to move funds seamlessly across blockchains while maintaining composability and security. As Bryan Pellegrino, Co-Founder and CEO of LayerZero Labs, emphasized, “With PYUSD0, PayPal USD expands its reach and flexibility to work across today’s networks and tomorrow’s.”

PayPal’s expansion comes at a critical juncture in the stablecoin market, which has reached a valuation of over $270 billion. PYUSD’s circulating supply has grown dramatically from approximately $520 million at the beginning of 2025 to about $1.3 billion, representing a 150% increase that positions PayPal against established competitors like Tether’s USDT and Circle’s USDC. This growth reflects both market demand and PayPal’s strategic commitment to capturing a larger share of the digital dollar ecosystem.

David Weber, Head of PayPal USD’s ecosystem, highlighted the strategic benefits: “By working together, we will enable PYUSD to reach new markets faster while maintaining compliance and composability from day one.” The arrangement supports regulatory compliance while providing faster market access, addressing concerns that have historically hampered stablecoin adoption in traditional finance circles.

The expansion aligns with PayPal’s broader blockchain strategy, which includes the recent launch of PayPal Links, a peer-to-peer payments tool that will soon support cryptocurrencies including Bitcoin, Ether, and PYUSD across PayPal, Venmo, and other compatible wallets. This comprehensive approach positions PayPal as a bridge between traditional finance and the emerging decentralized financial ecosystem, leveraging its established brand recognition and regulatory compliance to drive adoption.