PayPal is significantly expanding the reach of its dollar-backed stablecoin, PayPal USD (PYUSD), from its original home on Ethereum to a wide range of other blockchains. This move is part of the company's strategy to establish PYUSD as a key player in both traditional payments and decentralized finance.
Through an integration with LayerZero, a new version of the stablecoin, PYUSD0, will now be available on seven additional blockchains, including Tron, Avalanche, and Sei. This omnichain approach, powered by LayerZero’s Stargate Hydra bridge, allows the token to be fully interchangeable across all supported networks. Unlike wrapped or isolated versions, each PYUSD0 token can be redeemed one-for-one for U.S. dollars, regardless of which blockchain it's on. This helps solve the liquidity fragmentation issue common among stablecoins.
Although PYUSD's circulating supply of around $1.9 billion is small compared to giants like Tether's USDT and Circle's USDC, PayPal is betting that this broader reach will attract more developers and users. The company is also working to integrate PYUSD into its traditional payment services, with plans to add crypto support to its new PayPal Links peer-to-peer tool. This expansion is seen as a strategic bid by PayPal to increase its relevance and become a serious challenger in the stablecoin market.
September 2025, Cryptoniteuae