The stablecoin from PayPal, PYUSD, is reaching a new milestone. After Ethereum, Solana, Arbitrum, and Stellar, it is now expanding to Tron, Avalanche, Sei, and several other networks through the integration of LayerZero. This strategic advancement aims to give the American company’s token a true multichain dimension.
PYUSD0: The Omnichain Version of the Stablecoin
For this expansion, PayPal relies on Stargate Hydra, the bridge technology developed by LayerZero. The result is a version called PYUSD0, interoperable and ‘totally fungible’ with the native PYUSD. In other words, whether a user holds PYUSD on Ethereum or PYUSD0 on Tron, it is the same asset, always pegged 1:1 to the dollar.
In addition to the new networks (Tron, Avalanche, Sei, Aptos, Abstract, Ink, Stable), the existing versions on Berachain (BYUSD) and Flow (USDF) also transition to this unified standard.
From PayPal’s Experience to the Omnichain Standard
The initiative follows the partnership announced at the end of 2024 when PYUSD adopted LayerZero’s OFT (Omnichain Fungible Token) standard to streamline transfers between Ethereum and Solana. The goal is to eliminate liquidity fragmentation and allow self-custody users to move their stablecoin between blockchains without relying on Venmo, PayPal, or other centralized platforms.
By working with LayerZero, we enable PYUSD to reach new markets faster while maintaining compliance and interoperability from day one.
A Lightweight Against USDT and USDC Giants
Created in 2023 and issued by Paxos Trust Company, PYUSD currently has a market capitalization of around $1.9 billion. A significant increase, but still modest compared to industry giants like Tether (USDT) and Circle (USDC), with circulating supplies of 170 billion and 75 billion respectively.
To keep up, PayPal is launching initiatives. Just this week, the group unveiled PayPal Links, a P2P payment service via personalized links, with a crypto integration on the horizon. The goal is clear: to make PYUSD a smooth payment instrument usable on PayPal, Venmo, and compatible wallets.
Why It’s a Turning Point
The arrival of PYUSD on Tron and Avalanche is not merely a technical detail: these are two blockchains with significant volumes of stablecoins circulating, notably USDT on Tron. By establishing a presence on these networks, PayPal aims to gain ground where users already reside.
In a market dominated by Tether and Circle, this multichain strategy could breathe new life into PYUSD. While its adoption is still limited, the alliance between the PayPal brand power and LayerZero’s cross-chain infrastructure positions PYUSD much more competitively than at its launch.
In essence, PayPal is no longer taking small steps. With this deployment, its stablecoin enters the big leagues.
