Introduction
PayPal’s PYUSD stablecoin has expanded its reach to nine additional blockchains through LayerZero’s interoperability protocol, marking a significant milestone in the token’s growth. With a market capitalization reaching $1.3 billion—an all-time high—this strategic expansion enhances PYUSD’s utility across decentralized ecosystems while positioning PayPal more competitively against established stablecoin giants Tether and Circle.
Key Points
- PYUSD now accessible on Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron blockchains via LayerZero
- Corporate adoption survey shows 36% of companies use PYUSD, surpassing newer stablecoins with larger market caps
- Uses LayerZero's OFT Standard, same infrastructure as Tether's USDT0 and Wyoming's Frontier Stable Token
Strategic Expansion Through LayerZero's Interoperability Protocol
PayPal’s PYUSD stablecoin has dramatically expanded its blockchain presence, now accessible on nine additional networks including Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. This interoperability breakthrough was enabled by LayerZero, which recently acquired Stargate—a bridge connecting over 80 blockchains. The expansion represents a significant technological achievement for PayPal, which entered the cryptocurrency space nearly a decade after establishing its traditional payment services.
The bridged version of PayPal’s stablecoin is represented through PYUSD0 tokens, mirroring the wrapped Bitcoin mechanism where assets moved outside their native ecosystem are represented by tokens like WBTC and cbBTC. This approach allows users to maintain exposure to PYUSD’s value while accessing decentralized applications and services across multiple blockchain environments. David Weber, head of ecosystem for PayPal USD, emphasized that “innovations like this are essential for creating the seamless, interoperable financial infrastructure that users and developers demand.”
Market Position and Competitive Landscape
Despite its relatively recent introduction two years ago, PYUSD has achieved a market capitalization of $1.3 billion as of Thursday, according to data from CoinGecko. This figure represents an all-time high for the stablecoin’s adoption, though it still trails significantly behind industry leaders Tether ($171 billion) and Circle ($74 billion). The substantial gap highlights the competitive challenges PayPal faces in a market where established players have had years to refine their products and build user trust.
However, PYUSD’s corporate adoption tells a more promising story. A recent survey conducted by EY-Parthenon revealed that 36% of corporations use PYUSD, making it more popular than newer stablecoins like Ethena’s USDe and Sky Protocol’s USDS—both of which have larger market capitalizations. This corporate preference suggests that PayPal’s brand recognition and existing enterprise relationships provide a competitive advantage despite the stablecoin’s smaller overall market share.
Technical Infrastructure and Future Developments
The expansion utilizes LayerZero’s Omnichain Fungible Token (OFT) Standard, the same infrastructure supporting Tether’s USDT0 token and Wyoming’s recently introduced Frontier Stable Token. This technical standardization ensures compatibility and efficiency across different blockchain networks, creating a more seamless experience for developers and users alike. The stablecoin sector recently surpassed $270 million, indicating growing demand for interoperable digital assets.
PayPal’s blockchain strategy extends beyond stablecoin expansion. Earlier this week, the company announced that users will soon be able to make peer-to-peer payments in Bitcoin, Ethereum, and PYUSD using a new tool called PayPal Links. The product is expected to roll out first in the U.S. before expanding to international markets in the coming months. This development, combined with the blockchain expansion, positions PayPal as a increasingly significant player in bridging traditional finance with cryptocurrency ecosystems.
📎 Related coverage from: decrypt.co