PayPal expands stablecoin PYUSD in a major way, announcing its integration across nine additional blockchains on September 18, 2025. This move leverages LayerZero‘s advanced interoperability protocol to make PYUSD more versatile and accessible, potentially reshaping how users handle peer-to-peer (P2P) payments and decentralized finance (DeFi).
Launched in August 2023 by Paxos and backed 1:1 by U.S. dollars, PYUSD has grown its market cap to about $1.3 billion, securing the 11th spot among stablecoins. By expanding to these new networks, PayPal aims to compete more fiercely with heavyweights like USDT ($171.2 billion cap on 12 chains) and USDC ($74.3 billion cap on 25 chains), while fostering seamless global transactions.
PayPal Expands Stablecoin PYUSD: Key Details
At the core of this expansion is LayerZero‘s Stargate Hydra bridge, which enables the creation of PYUSD0, a permissionless, fully fungible version of PYUSD. This allows users to self-custody and transfer the stablecoin across chains without traditional banking hurdles.
LayerZero manages minting, burning, and deployment, ensuring smooth operations. For chains like Berachain and Flow, community versions (BBYUSD and USDF) will auto-upgrade to PYUSD0, simplifying adoption for existing holders. A separate addition includes Stellar, pushing PYUSD’s total supported blockchains beyond a dozen.
The 9 New Blockchains Boosting PYUSD’s Reach
PayPal expands stablecoin PYUSD to these networks, each selected for its efficiency in handling low-cost, high-speed transactions:
- Tron: Excels in affordable P2P transfers with massive throughput.
- Avalanche: Provides sub-second finality, perfect for DeFi scalability.
- Aptos: Leverages the Move language for secure, high-performance apps.
- Abstract: Offers modular designs to enhance developer innovation.
- Ink: Built on Polkadot for efficient parachain interoperability.
- Sei: Optimized for trading with advanced orderbook features.
- Stable: Focuses on stablecoin ecosystems with robust security.
- Berachain: Upgrading from a community token for broader utility.
- Flow: Known for NFTs and gaming, now with seamless PYUSD support.
Implications for Interoperability and P2P Payments
This expansion significantly enhances cross-chain interoperability, allowing effortless PYUSD transfers that could accelerate DeFi growth and everyday use.
As Bryan Pellegrino, CEO of LayerZero Labs, stated, “Integrations like PayPal’s make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock.”
Building on PayPal’s recent “PayPal Links” feature, which integrates PYUSD with Bitcoin and Ethereum for real-time P2P, this could drive borderless payments, especially in high-remittance regions.
With the stablecoin market projected to hit $2 trillion by 2028, PayPal expands stablecoin PYUSD to position it as a bridge between fiat and crypto, boosting liquidity and user adoption.
Curious about how this changes the crypto game? Follow our MevX blog for deeper dives and updates.
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