PayPal's PYUSD Fuels a Globalized Cryptocurrency Financial Network

PayPal has broadened the availability of its U.S. dollar-linked stablecoin,

USD (PYUSD), by adopting LayerZero’s cross-chain protocol. Thanks to this partnership, PYUSD can now be accessed on nine more blockchain networks, such as Abstract, , , Ink, , Stable, and . Community-created versions on and Flow have been automatically upgraded to follow the new PYUSD0 format, a fully permissionless token that is interchangeable with the original PYUSD. This development builds upon PYUSD’s existing native launches on , , , and Stellar, bringing its network reach to 13 chains overall.

The rollout takes advantage of LayerZero’s Stargate Hydra framework, enabling smooth cross-chain movements of PYUSD0. This setup lets users transfer the stablecoin between compatible blockchains while keeping control of their assets and meeting compliance requirements. Since its 2023 launch as the first stablecoin issued by a leading fintech company, PayPal’s PYUSD has gained significant traction. Its circulation expanded from $520 million at the beginning of 2025 to $1.3 billion, indicating robust interest in dollar-based stable assets for decentralized finance (DeFi) and cross-chain uses.

This expansion highlights PayPal’s broader goal to make PYUSD a foundational asset in the digital currency landscape. With LayerZero’s interoperability, PYUSD now connects with both established blockchains like Avalanche and newer platforms such as Sei and Aptos. This enhanced network makes the stablecoin more useful for developers, traders, and DeFi platforms, supporting PayPal’s aim to provide a reliable, dollar-backed token for decentralized markets. The move also reflects a wider industry shift, as traditional

are turning to blockchain technology to boost liquidity and accessibility.

Even with its rapid growth, PYUSD still trails the major players in the stablecoin space. Tether’s

remains the leader with a $171.2 billion valuation, followed by Circle’s at $74.3 billion. PYUSD currently sits at 11th place, alongside rivals like and . Still, its cross-chain integration and PayPal’s reputation may give it an edge. The U.S. Treasury’s April forecast that the stablecoin sector could hit $2 trillion by 2028 and new regulations like the GENIUS Act, approved in July, point to a promising future for the industry.

PayPal’s collaboration with

also demonstrates the rising importance of blockchain interoperability. By making PYUSD0 operable on various blockchains, PayPal is tackling fragmentation within the stablecoin market and ensuring that users can access the token directly, without centralized platforms. LayerZero’s CEO, Bryan Pellegrino, noted that such integrations are paving the way for a 24/7, borderless financial system, with stablecoins at the forefront of mainstream crypto adoption.

This expansion is part of PayPal’s wider push in digital payments, which also includes rolling out PayPal Links for peer-to-peer transfers and plans to integrate cryptocurrency features across the PayPal, Venmo, and compatible wallet platforms. These initiatives highlight PayPal’s efforts to connect legacy finance with decentralized technology, reinforcing PYUSD’s role as a flexible solution for payments, trading, and DeFi. As cross-chain operations gain momentum, PayPal’s multi-chain approach could help cement PYUSD’s place in the future of crypto markets.