PayPal Bridges Blockchains, Boosts PYUSD’s Global Utility

PayPal has expanded its PayPal USD (PYUSD) stablecoin to seven additional blockchain networks, enhancing its reach and utility within the cryptocurrency ecosystem. Through a partnership with LayerZero, a cross-chain interoperability protocol, PYUSD is now available on blockchains including Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. This move builds on an earlier integration with LayerZero’s Omnichain Fungible Token (OFT) standard, which allowed PYUSD to move between Ethereum and Solana without relying on centralized platforms.

The expansion introduces a permissionless version of PYUSD known as PYUSD0, which is fully fungible with the native PYUSD token. This means users can access and use PYUSD0 across the newly supported blockchains while maintaining the same 1:1 redeemability for U.S. dollars. LayerZero highlighted that the move would allow for seamless interoperability and eliminate liquidity fragmentation, enabling a broader range of use cases for the stablecoin.

This development is a significant step in PayPal’s broader strategy to integrate stablecoins into mainstream financial services. In June 2025, PayPal also announced plans to bring PYUSD to the Stellar network, pending regulatory approval from the New York State Department of Financial Services (NYDFS). Stellar, a blockchain optimized for fast, low-cost transactions, could enable PYUSD to facilitate cross-border payments, micro-financing, and business loans in over 170 countries. PayPal executives emphasized that this integration would enhance the utility of stablecoins for real-world commerce, particularly in markets with limited access to traditional banking infrastructure.

PYUSD has seen growing adoption among corporate users, with 36% of respondents in a recent EY-Parthennon survey indicating they use the stablecoin, outpacing alternatives like Ethena’s USDe and Sky Protocol’s USDS. The stablecoin currently has a market capitalization of $1.3 billion, according to CoinGecko. While still far behind the market leaders such as Tether and Circle, PayPal’s strategic expansions signal a commitment to making PYUSD a versatile and widely accepted stablecoin.

The company also introduced PayPal Links, a peer-to-peer payment tool that supports PYUSD alongside Bitcoin and Ethereum, with a planned rollout in the U.S. and international markets. This aligns with PayPal’s broader goal of integrating digital assets into everyday financial interactions, offering users new ways to send and receive money in the digital economy.

As stablecoins continue to gain traction, the sector’s market capitalization is expected to grow significantly in the coming years. J.P. Morgan Global Research estimates that the stablecoin market could expand to between $500 billion and $750 billion, driven by adoption in cross-border payments, remittances, and digital asset trading. However, the sector still faces regulatory and operational risks, including liquidity challenges and the potential for runs on stablecoin reserves, as seen with the collapse of TerraUSD in 2022.

PayPal’s ongoing efforts to expand PYUSD’s presence across multiple blockchains reflect a broader industry trend of leveraging blockchain technology to enhance financial infrastructure. As regulatory clarity and market confidence continue to evolve, stablecoins like PYUSD are positioning themselves as a bridge between traditional finance and the digital economy, with PayPal leading the charge in this transformative space.