PayPal Expands PYUSD Stablecoin to Eight New Blockchain Networks

TLDR

• PayPal is expanding PYUSD stablecoin across eight new blockchains through LayerZero’s Stargate Hydra bridge
• A permissionless version called PYUSD0 will be fully fungible with PYUSD and interoperable across blockchains
• PYUSD now supports Tron, Avalanche, Aptos, Abstract, Ink, Sei, Stable, and Stellar
• The US Treasury estimates the stablecoin market will grow from $295 billion to $2 trillion by 2028
• PYUSD currently ranks 11th among stablecoins with a $1.3 billion market cap, far behind leaders USDT ($171.2B) and USDC ($74.3B)

Payments giant PayPal has announced a major expansion of its PayPal USD (PYUSD) stablecoin to eight new blockchain networks. This move makes PYUSD one of the most widely accessible stablecoins in the cryptocurrency ecosystem.

The expansion comes through two separate integrations. Seven new blockchains are being added via LayerZero’s Stargate Hydra bridge, while an eighth network, Stellar, is being added through a separate integration.

Through the LayerZero integration, PayPal is creating a permissionless version of its stablecoin called PYUSD0. According to LayerZero, this new token will be “fully fungible” with the original PYUSD and will enable interoperability across multiple blockchains.

The new blockchain networks receiving PYUSD support include Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable. In addition, existing permissionless versions on Berachain (BBYUSD) and Flow (USDF) will upgrade to the PYUSD0 standard.

The Technical Implementation

Stargate Hydra will serve as the interface for PYUSD0 transfers between networks. LayerZero will enable the minting, burning, and deployment of the PYUSD0 tokens across these blockchains.

This expansion builds upon PayPal’s existing support for Ethereum, Solana, and Arbitrum networks. The addition of Stellar was announced separately on the same day.

The Stellar blockchain is known for its low fees and five-second transaction finality. It has gained popularity in developing countries where people seek to save money in US dollars.

LayerZero CEO Bryan Pellegrino highlighted the importance of this integration.

Market Position and Growth Potential

Despite this expansion, PYUSD still has ground to cover in the competitive stablecoin market. According to CoinGecko data, PYUSD currently ranks 11th among stablecoins with a market capitalization of $1.3 billion.

This places it well behind industry leaders Tether (USDT) and Circle (USDC), which hold market caps of $171.2 billion and $74.3 billion respectively. USDT currently supports 12 blockchain networks, while USDC is available on 25 different chains.

Other major competitors include Ethena USDe, USDS, and Dai, which have market caps ranging from $4.5 billion to $13.9 billion.

The broader stablecoin market is expected to see major growth in coming years. The US Treasury estimated in April that the market would expand from its current $295 billion to approximately $2 trillion by 2028.

This growth projection has been further supported by recent regulatory developments. In July, US President Trump signed the GENIUS Act, which is considered one of the most comprehensive stablecoin regulations to date.

PayPal initially launched PYUSD in August 2023, marking its first major move into the cryptocurrency space. The stablecoin is issued by Paxos, a regulated financial institution specializing in blockchain infrastructure.

LayerZero’s CEO described stablecoins as cryptocurrency’s “killer app” and suggested that integrations like PayPal’s “make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock.”

The goal of this integration, according to Pellegrino, is to create “better money experiences utilizing modern technology.”

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