tl;dr
PayPal expanded its PYUSD stablecoin to nine blockchains, including Abstract, Aptos, Avalanche, and others, via a partnership with LayerZero and Stargate. The stablecoin, now accessible as PYUSD0 tokens, aims to enhance cross-chain interoperability. PYUSD's market cap reached $1.3 billion, though it...
**PayPal’s PYUSD Stablecoin Expands to Nine Blockchains, Eyeing Corporate Adoption**
PayPal is making waves in the crypto world with a significant move: its PYUSD stablecoin has now launched on nine new blockchains, thanks to a partnership with LayerZero and its Stargate bridge. This expansion, announced this week, marks a pivotal step in PayPal’s quest to carve out a niche in the crowded stablecoin market—and it’s not just about reach. It’s about building the infrastructure to power the future of digital finance.
The stablecoin, introduced two years ago, is now accessible on Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, among others. The rollout was enabled by Stargate, a cross-chain bridge acquired by LayerZero last month. Stargate connects over 80 blockchains, acting as a bridge for assets like PYUSD. When moved to these networks, PYUSD is represented as PYUSD0 tokens, a format akin to wrapped Bitcoin (WBTC), which lets users interact with the token outside its native ecosystem.
While PayPal’s entry into crypto predates Bitcoin’s 2009 launch, the firm has struggled to catch up with industry giants like Tether (USDT) and Circle (USDC). As of Thursday, PYUSD’s market cap stood at $1.3 billion—its highest yet—but that pales in comparison to Tether’s $171 billion and Circle’s $74 billion. Yet, in a survey by EY-Parthenon, 36% of corporate users cited PYUSD as their preferred stablecoin, outpacing alternatives like Ethena’s USDe and Sky Protocol’s USDS, despite their larger market caps.
“This is about creating seamless, interoperable financial infrastructure,” said David Weber, head of ecosystem for PayPal USD, in a statement. The stablecoin sector has now surpassed $270 billion in total value, and PayPal’s move underscores its ambition to be a key player.
PYUSD’s expansion is powered by LayerZero’s Omnichain Fungible Token (OFT) standard, the same framework used by Tether’s USDT0 and Wyoming’s new Frontier Stable Token. This technical alignment highlights the growing standardization in cross-chain finance, even as competition intensifies.
Adding to its push, PayPal announced a new feature called *PayPal Links*, allowing users to send Bitcoin, Ethereum, and PYUSD via peer-to-peer payments. Initially rolling out in the U.S., the tool aims to simplify crypto transactions for everyday users—a critical step in mainstream adoption.
For now, PYUSD’s footprint remains modest compared to its rivals. But its corporate appeal, interoperability strategy, and integration with cutting-edge infrastructure like Stargate suggest PayPal is positioning itself not just as a payment gateway, but as a foundational player in the evolving crypto ecosystem. As the market grows, the question isn’t just who has the biggest market cap—but who builds the most resilient, accessible bridges between blockchains.
What do you think? Will PayPal’s PYUSD rise to challenge the stablecoin giants, or will it remain a niche player? Share your thoughts.