PayPalS PyUSDโ Expands to Sevenโฃ New Blockchains, Challenging Stablecoin Giants
September 26, 2024 – PayPal is making a โimportant push toโ establish itsโ stablecoin, โPayPal โฃUSD (PYUSD), as a majorโฃ player in the digital asset space. โThe โขcompany announcedโ today a ample expansion of PYUSD’s interoperability, bringing it to seven new blockchains thanks to a partnership leveraging LayerZero‘s bridging technology. Thisโค move aims to boost liquidity andโค accessibility, positioning PYUSD to directlyโค compete with established market leadersโ like Tether’s USDT and Circle’s USDC.
Currently available on Ethereum, Solana, Arbitrum, and Stellar, PYUSD โwill now โextend its reach to Tron, Avalanche, Sei, Abstract,โค Aptos, โInk, and Stable. Existingโ versions ofโข the tokenโ on Berachain (BYUSD)โฃ and Flow (USDF) will also โbe โขupgraded to the new, omnichain โversion – PYUSD0.
(Image: PayPal-Stellar-PYUSD.png – Illustrative of PayPal’s expanding โblockchain presence)
The core of โthis expansion โฃlies in the adoption of LayerZero’s Fungible Omnichain Token โฃ(ODT) standard. Thisโค technology ensures PYUSD0 remains fullyโค interoperable and โคfungible with โthe original PYUSD.โฃ Essentially, users can seamlessly hold and transfer the stablecoin across โany of theโ supported networks, confident that its value โremains consistentlyโ pegged to the โคUS dollar atโ a 1:1 ratio,โ regardless of the underlyingโ blockchain.
“This alliance with LayerZero will allow PYUSD to reachโ new markets faster, maintaining compliance from day one,” โฃexplained david Weber, Head of PayPal USD Ecosystem.โ theโ strategy empowers users of non-custodial walletsโค to move funds between different blockchains without relying โonโฃ centralized exchanges, โenhancing โuser control and versatility.
Launched in 2023, PYUSD currently has a circulatingโ supply of approximately 1.9โค billion tokens โข- a relatively small figure compared to the trillions circulating in USDT โขand USDC. However, this aggressive expansion, coupled with recent initiatives like the rollout of PayPal’sโ peer-to-peer payment system with โplanned cryptocurrency integration, signals โa clear commitment from โPayPal to become a centralโฃ force in the future ofโ digital payments.
Competition Heats Up in the Omnichain Stablecoin โRace
This expansion places PYUSD in direct competition with otherโข omnichain stablecoin projects, notably โขTether’s USDT0, which also utilizes LayerZero technology.โ The stablecoin market,a critical component for theโ broader adoptionโ of cryptocurrencies,is currentlyโ experiencing a surge โin competition โขfor liquidityโ and global reach.
The timing of this โคmoveโ is particularly strategic,โ coinciding with increasing โregulatory clarity in the