PayPal USD Redefines Cross-Chain Value Flow with LayerZero Expansion

PayPal USD (PYUSD) has expanded its reach to nine additional blockchains through an integration with LayerZero’s Stargate Hydra bridge, further broadening the accessibility of the stablecoin within the decentralized finance (DeFi) ecosystem. The new version of the stablecoin, named PYUSD0, is fully fungible with the original PYUSD and allows seamless cross-chain interoperability, enabling users to transfer value between blockchains without the need for manual wrapping or centralized intermediaries.

The integration spans Tron, Avalanche, Aptos, Abstract, Ink, Sei, Stable, and Stellar, with existing permissionless versions on Berachain and Flow also upgraded to PYUSD0. This move positions PYUSD as one of the most accessible stablecoins in the crypto ecosystem, following its initial deployment on Ethereum, Solana, Arbitrum, and Stellar. Stargate Hydra, a bridge service that supports over 80 blockchains, plays a central role in facilitating the cross-chain transfers and managing the minting, burning, and deployment of PYUSD0.

The integration leverages LayerZero’s Omnichain Fungible Token (OFT) standard, which ensures that the economic identity of PYUSD remains consistent across different blockchains. This standard allows for seamless transfers and value parity between the original token and its cross-chain counterpart. Users can now move PYUSD0 across supported chains without altering the unit of account, providing a unified experience regardless of the network they operate on.

According to data provided by TRONSCAN, the TRON network alone hosts over 332 million accounts and more than $28 billion in total value locked (TVL). With its high transaction throughput and low fees, TRON has become a key settlement layer for stablecoin transactions, particularly in emerging markets where users seek cost-effective ways to store and transfer value in U.S. dollars.

Despite its growing presence, PYUSD remains significantly smaller than leading stablecoins like Tether’s USDT and Circle’s USDC, which boast market caps of $171.2 billion and $74.3 billion, respectively. As of the latest data, PYUSD has a market cap of approximately $1.3 billion, placing it 11th in the global stablecoin rankings. However, the expansion into nine new blockchains marks a significant step in its growth trajectory, particularly as the demand for cross-chain payments and DeFi liquidity solutions continues to rise.

LayerZero CEO Bryan Pellegrino emphasized the strategic importance of stablecoins in shaping the future of global finance, noting that integrations like the one with PayPal reinforce the potential for a borderless, 24/7 financial system. “This is not just about scaling,” he said. “It’s about showing how the U.S. dollar can function seamlessly across multiple blockchain environments.”

The expansion also aligns with broader industry trends, as the U.S. Treasury estimated in April that the stablecoin market could grow to $2 trillion by 2028. This momentum has been further supported by recent regulatory developments, including the signing of the GENIUS Act in July, which is considered one of the most comprehensive stablecoin laws to date.

As PYUSD continues to expand, it faces competition from other stablecoins that have already established extensive blockchain support. For instance, Tether’s USDT operates on 12 blockchains, while USDC runs on 25. Despite these challenges, PYUSD’s integration with LayerZero’s infrastructure and its growing adoption by institutional users and DeFi platforms could position it as a viable alternative in the evolving stablecoin landscape.