PayPal is widening the reach of its PayPal USD stablecoin (PYUSD), bringing it to eight new blockchains. Seven of them are being added through a partnership with LayerZero’s Stargate Hydra bridge.
As part of this move, a permissionless version of the stablecoin, called PYUSD0, will be launched. According to LayerZero, PYUSD0 will be fully interchangeable with PYUSD and can move across different blockchains.
The new blockchains include Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable. Meanwhile, existing permissionless versions on Berachain (BBYUSD) and Flow (USDF) will be updated to PYUSD0. On the same day, PayPal also announced that PYUSD is now available on Stellar.
Stargate Hydra will handle transfers of PYUSD0, while LayerZero will power its minting, burning, and deployment.
With this expansion, PYUSD now works on Ethereum, Solana, Arbitrum, and Stellar, making it one of the most widely accessible stablecoins in the crypto space.
The push for stablecoin adoption comes at a time when the U.S. Treasury projected in April that the $295 billion market could grow to $2 trillion by 2028.
The momentum accelerated in July after President Trump signed the GENIUS Act, a landmark law widely viewed as one of the most comprehensive regulatory frameworks for stablecoins to date.
PayPal’s Stablecoin Push Amid Fierce Market Competition
PayPal is positioning itself among the major stablecoin players competing with Tether (USDT) and Circle (USDC), which hold market capitalizations of $171.2 billion and $74.3 billion, according to CoinGecko. By comparison, USDT operates across 12 blockchains, while USDC runs on 25.
Other leading tokens in the sector include Ethena USDe (USDE), USDS, and Dai (DAI), each with market caps between $13.9 billion and $4.5 billion. PayPal’s own stablecoin, PYUSD, currently ranks 11th with a $1.3 billion market cap.
“We are at the start of a global financial market that breaks down borders and works around the clock. Better money experiences utilizing modern technology,” LayerZero Labs CEO Bryan Pellegrino.
