PayPal's PYUSD stablecoin has significantly expanded its reach, now available on nine additional blockchains through an integration with LayerZero's interoperability protocol. The expansion, announced on Thursday, enables PYUSD to function on Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron networks. Existing bridged deployments on Berachain (BYUSD) and Flow (USDF) will be upgraded to the new PYUSD0 standard.
The expansion was facilitated through Stargate, a bridge connecting over 80 blockchains that LayerZero acquired last month. When bridged to various networks, PayPal's stablecoin is represented through PYUSD0 tokens, which are fully fungible with native PYUSD and maintain 1:1 redemption capability for U.S. dollars regardless of which supported chain they're held on.
This development builds on PayPal's November adoption of LayerZero's Omnichain Fungible Token (OFT) standard, which previously enabled direct transfers between Ethereum and Solana without centralized intermediaries. The stablecoin sector has recently grown past $270 million, with PYUSD reaching a market capitalization of $1.3 billion ($1.9 billion according to The Block) - an all-time high for the token, though still significantly smaller than Tether's USDT ($171 billion) and Circle's USDC ($74 billion).
David Weber, head of ecosystem for PayPal USD, stated: "Innovations like this are essential for creating the seamless, interoperable financial infrastructure that users and developers demand." He added that working with LayerZero will enable PYUSD to reach new markets faster while maintaining compliance and composability.
The expansion aligns with PayPal's broader crypto strategy, including the recent launch of PayPal Links - a peer-to-peer payments feature that will support bitcoin, ether, PYUSD, and other assets across PayPal, Venmo, and compatible wallets worldwide.