PayPalS PyUSD Expands to Seven New Blockchains, Challenging Stablecoin Giants
September 26, 2024 – PayPal is making a important push to establish its stablecoin, PayPal USD (PYUSD), as a major player in the digital asset space. The company announced today a ample expansion of PYUSD’s interoperability, bringing it to seven new blockchains thanks to a partnership leveraging LayerZero‘s bridging technology. This move aims to boost liquidity and accessibility, positioning PYUSD to directly compete with established market leaders like Tether’s USDT and Circle’s USDC.
Currently available on Ethereum, Solana, Arbitrum, and Stellar, PYUSD will now extend its reach to Tron, Avalanche, Sei, Abstract, Aptos, Ink, and Stable. Existing versions of the token on Berachain (BYUSD) and Flow (USDF) will also be upgraded to the new, omnichain version – PYUSD0.
(Image: PayPal-Stellar-PYUSD.png – Illustrative of PayPal’s expanding blockchain presence)
The core of this expansion lies in the adoption of LayerZero’s Fungible Omnichain Token (ODT) standard. This technology ensures PYUSD0 remains fully interoperable and fungible with the original PYUSD. Essentially, users can seamlessly hold and transfer the stablecoin across any of the supported networks, confident that its value remains consistently pegged to the US dollar at a 1:1 ratio, regardless of the underlying blockchain.
“This alliance with LayerZero will allow PYUSD to reach new markets faster, maintaining compliance from day one,” explained david Weber, Head of PayPal USD Ecosystem. the strategy empowers users of non-custodial wallets to move funds between different blockchains without relying on centralized exchanges, enhancing user control and versatility.
Launched in 2023, PYUSD currently has a circulating supply of approximately 1.9 billion tokens - a relatively small figure compared to the trillions circulating in USDT and USDC. However, this aggressive expansion, coupled with recent initiatives like the rollout of PayPal’s peer-to-peer payment system with planned cryptocurrency integration, signals a clear commitment from PayPal to become a central force in the future of digital payments.
Competition Heats Up in the Omnichain Stablecoin Race
This expansion places PYUSD in direct competition with other omnichain stablecoin projects, notably Tether’s USDT0, which also utilizes LayerZero technology. The stablecoin market,a critical component for the broader adoption of cryptocurrencies,is currently experiencing a surge in competition for liquidity and global reach.
The timing of this move is particularly strategic, coinciding with increasing regulatory clarity in the
