PayPal's PYUSD Drives a Borderless Crypto Financial Network

PayPal has significantly expanded the reach of its U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), by integrating it with LayerZero’s interoperability protocol. Through this collaboration, PYUSD is now available on nine additional blockchains, including Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. Community-issued versions on Berachain and Flow have automatically transitioned to the new PYUSD0 standard, a permissionless token fully interchangeable with the original PYUSD. The move builds on existing native issuance on Ethereum, Solana, Arbitrum, and Stellar, extending PYUSD’s presence to 13 blockchains in total.

The integration leverages LayerZero’s Stargate Hydra system, which enables seamless cross-chain transfers of PYUSD0. This infrastructure allows users to move the stablecoin across supported networks while maintaining self-custody and compliance. PayPal’s PYUSD, launched in 2023 as the first stablecoin from a major fintech firm, has seen rapid adoption. Its supply has grown from $520 million at the start of 2025 to $1.3 billion, reflecting increasing demand for dollar-pegged assets in decentralized finance (DeFi) and cross-chain applications.

The expansion underscores PayPal’s strategy to position PYUSD as a core tool in the crypto economy. By leveraging LayerZero’s interoperability, the stablecoin gains access to both established chains like Avalanche and emerging ecosystems such as Sei and Aptos. This broadens its utility for developers, traders, and DeFi protocols, aligning with PayPal’s vision of embedding a trusted, dollar-backed stablecoin into decentralized markets. The move also aligns with broader industry trends, as traditional financial institutions increasingly adopt blockchain solutions to enhance liquidity and accessibility.

Despite its growth, PYUSD remains a distant follower in the stablecoin market. Tether’s USDT leads with a $171.2 billion market cap, while Circle’s USDC ranks second at $74.3 billion. PYUSD currently holds an 11th-place ranking, competing with tokens like Ethena USDe and Dai. However, its cross-chain capabilities and PayPal’s institutional credibility provide a competitive edge. The U.S. Treasury’s April projection that the stablecoin market could reach $2 trillion by 2028 highlights the sector’s potential, with regulatory clarity—such as the July passage of the GENIUS Act—further supporting growth.

PayPal’s partnership with LayerZero also reflects the growing importance of interoperability in blockchain infrastructure. By enabling PYUSD0 to operate across multiple networks, the company addresses fragmentation in the stablecoin ecosystem, allowing users to access the token without relying on centralized intermediaries. LayerZero CEO Bryan Pellegrino emphasized that such integrations signal the emergence of a global financial system operating “around the clock and across borders,” with stablecoins serving as a key driver of mainstream adoption.

The expansion coincides with PayPal’s broader digital payment initiatives, including the launch of PayPal Links for peer-to-peer transactions and plans to integrate cryptocurrency support across PayPal, Venmo, and compatible wallets. These efforts highlight the company’s commitment to bridging traditional finance and decentralized ecosystems, positioning PYUSD as a versatile tool for payments, trading, and DeFi use cases. As cross-chain activity accelerates, PayPal’s multi-network presence may further solidify PYUSD’s role in the evolving crypto landscape.

Source: [1] ecoinimist.com/2025/09/19/paypal-expands-stablecoin-pyud-layerzero/ [2] coincentral.com/paypal-expands-pyusd-stablecoin-to-9-new-blockchains-through-layerzero-integration/ [3] coinpaper.com/11110/pay-pal-expands-pyusd-stablecoin-across-eight-new-blockchains [4] blocknews.com/paypal-stablecoin-expansion-pyusd-hits-9-new-blockchains-with-layerzero-heres-what-you-need-to-know/ [5] thecryptobasic.com/2025/09/19/paypal-expands-pyusd-stablecoin-to-multiple-blockchains-via-layerzero/