PayPal is pushing its dollar-backed stablecoin into new territory, widening access far beyond its original home on Ethereum.
The payments giant announced that PayPal USD (PYUSD) is now rolling out across multiple blockchains — part of a strategy to cement the token as a fixture of both payments and decentralized finance.
From Single Chain to Omnichain
When PYUSD launched in 2023, it lived only on Ethereum. Over the past year it spread to Solana, Arbitrum, and Stellar. Now, through an integration with LayerZero, a new version called PYUSD0 will circulate on seven more blockchains, including Tron, Avalanche, and Sei. The upgrade also folds existing bridged tokens on Berachain and Flow into the same omnichain model.
Unlike wrapped or isolated versions of stablecoins, PYUSD0 is fully interchangeable with the original. Whether it’s held on Ethereum or any LayerZero-supported network, each token can still be redeemed for U.S. dollars on a one-to-one basis.
Why LayerZero Matters
LayerZero’s Stargate Hydra bridge underpins the rollout, relying on its omnichain fungible token (OFT) framework. That system aims to solve the fragmentation problem that plagues stablecoins across different chains, allowing liquidity to move freely without depending on centralized hubs like PayPal’s own app or Venmo.
The approach mirrors another LayerZero-backed project: USDT0, an omnichain version of Tether’s dominant stablecoin.
Chasing the Market Leaders
With a circulating supply around $1.9 billion, PYUSD remains a small player compared to Tether’s USDT and Circle’s USDC, which each sit in the tens of billions. Still, PayPal hopes broader reach and smoother interoperability will draw developers and users into its ecosystem. “Expanding quickly, but with compliance baked in, is our north star,” said David Weber, who heads the PYUSD program.
The company’s ambitions extend further. Earlier this week it introduced PayPal Links, a peer-to-peer tool that lets users send funds via custom shareable links. Support for crypto — including bitcoin, ether, and PYUSD — is expected to be added soon, creating a bridge between PayPal’s traditional payments network and blockchain-based assets.
A Bid for Relevance in DeFi
For now, PYUSD is still dwarfed by competitors. But its growing chain presence and backing from a global payments brand may help it carve out a niche, especially as stablecoins become central to cross-border transfers, lending platforms, and tokenized treasuries.
If PayPal can convince users that PYUSD works seamlessly across ecosystems, it could gradually move from being an experiment into a serious challenger in the stablecoin wars.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/tron-avalanche-and-sei-among-new-networks-for-paypals-pyusd/
