PayPal's Stablecoin Breakthrough: Creating a Global Crypto Dollar Without Intermediaries

PayPal’s

USD (PYUSD) stablecoin is increasing its reach by launching on more blockchains through an integration with LayerZero’s Stargate Hydra bridge, making it more widely available for users and developers within the decentralized finance (DeFi) sector. This initiative introduces a new permissionless variant, PYUSD0, which is now accessible on several additional chains, such as , , , and others. The aim of this expansion is to boost both interoperability and liquidity among various networks, all while retaining the stablecoin’s 1:1 value with the U.S. dollar.

Recent updates reveal that

has verified that PYUSD0 can be exchanged on a one-to-one basis with the original PYUSD, ensuring users can move their funds across chains without value loss or market fragmentation. This cross-chain compatibility is powered by LayerZero’s Omnichain Fungible Token (OFT) protocol, the same framework supporting Tether’s USDT0. The updated PYUSD0 is now available on seven more blockchains, including Abstract, , Avalanche, Ink, Sei, Stable, and Tron, while current bridged tokens on and Flow are also transitioning to the PYUSD0 format.

This follows PayPal’s adoption of LayerZero’s OFT protocol in November 2024, which opened up cross-chain movement between

and . The latest update removes the requirement for centralized platforms like Venmo or PayPal itself when transferring tokens between blockchains, offering users more control over their assets and less reliance on traditional finance. This broader support is also set to encourage more developers to add PYUSD to their platforms without the need for special approval.

Current figures from CoinGecko show that PYUSD’s market cap is about $1.3 billion, hitting a record high. Still, PYUSD is much smaller in scale compared to leading stablecoins, such as Tether’s

and Circle’s , whose market values are $171 billion and $74 billion, respectively. Despite the difference in size, PYUSD is seeing strong adoption in the business sector; a recent EY-Parthennon survey showed that 36% of companies surveyed use PYUSD for their transactions, making it more popular than options like Ethena’s USDe and Sky Protocol’s USDS.

This rollout is a component of PayPal’s broader effort to weave digital assets into its platform. The firm recently introduced PayPal Links, a peer-to-peer payment option that lets users send or receive money using personalized links. This service is expected to add support for cryptocurrencies, including

, Ethereum, and PYUSD soon, with the U.S. launch scheduled first, followed by a global rollout.

Industry experts note that PYUSD’s expansion to more blockchains highlights PayPal’s resolve to promote a more open and inclusive financial system. As the stablecoin market recently topped $270 billion, both interoperability and adherence to regulations are becoming crucial for further adoption.