PayPal's stablecoin expands to 9 new blockchains

PayPal’s stablecoin, PYUSD, has just crossed the $1.3 billion market cap milestone. At the same time, it now expands to Tron, Avalanche, and seven other blockchains thanks to LayerZero. Is the digital payment giant finally catching up to the leaders Tether and Circle?

PYUSD crosses a key milestone in the stablecoin universe

On September 18, PayPal’s PYUSD stablecoin surpassed $1.3 billion in market capitalization for the first time, according to CoinGecko data.

Launched only two years ago, it quickly established itself, particularly among companies. A survey conducted by EY-Parthenon reveals that 36% of them already use PYUSD, ahead of newer players like Athena’s USDe or Sky Protocol’s USDS.

This breakthrough is especially notable since PayPal joined the stablecoin race well after its rivals. The market remains dominated by Tether (USDT), with $171 billion, and Circle (USDC), with $74 billion.

Yet, PYUSD is making its way as a credible alternative, notably in institutional use cases, where the issuer’s solidity and reputation are decisive criteria.

PayPal’s key advantage lies in its brand image: a globally recognized, regulated player, already deeply embedded in the daily lives of millions of users.

This heritage gives it immediate legitimacy in a sector where trust remains key, and where many stablecoins still struggle to gain market recognition.

A strategic expansion to nine additional blockchains

Another major highlight of the week is the arrival of PYUSD on nine new blockchains, including Tron and Avalanche, thanks to the LayerZero interoperability protocol. This expansion relies on Stargate, a bridge connecting more than 80 networks, recently acquired by LayerZero.

Concretely, PayPal’s stablecoin becomes available in environments where demand is particularly strong.

Tron, essential for low-cost cross-border transfers, and Avalanche, known for its DeFi applications, open much broader adoption prospects for PYUSD.

This integration strengthens both its liquidity and accessibility while encouraging its use in new use cases.

“Innovations like this are essential to create the transparent and interoperable financial infrastructure that users and developers demand“, emphasizes David Weber, head of the PayPal USD ecosystem.

In a stablecoin market estimated at over $270 billion, interoperability becomes a decisive factor to remain competitive and attract users beyond a single ecosystem.

With this double progress – surpassing the $1.3 billion market cap and expanding to new networks – PayPal sends a clear signal: PYUSD enters the league of the major stablecoins.

Although the dominance of Tether and Circle remains overwhelming, PayPal relies on a trio of strengths – trust, innovation, and institutional adoption – to establish itself as an essential player in digital payment and decentralized finance.