PayPal is taking its US dollar-pegged stablecoin, PYUSD, into a new growth phase by expanding beyond its original networks. Through a partnership with LayerZero’s interoperability framework, a permissionless version known as PYUSD0 is now available across nine blockchains, including Tron, Avalanche, and Sei, in what marks the biggest distribution milestone since the token’s 2023 launch.
Breaking Liquidity Silos
PYUSD, issued by Paxos Trust Company, was initially confined to Ethereum, Solana, Arbitrum, and Stellar. The new rollout adds Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, while community versions on Berachain and Flow will automatically update to PYUSD0. All versions remain fully redeemable 1:1 for U.S. dollars, ensuring fungibility across ecosystems without requiring user intervention.
PYUSD is now live on Stellar.⚡️Welcome to low-fee transfers, ~5s finality, anchors for fiat ramps, and Stellar Asset Contract-compatible contracts – built for real payments.#PYUSD #stablecoin https://t.co/qSUmT4GuXM
— PayPal Developer (@paypaldev) September 18, 2025
This expansion is powered by Stargate, a cross-chain bridge linking over 80 blockchains. LayerZero, which recently acquired Stargate, leveraged its Hydra model to extend PYUSD into these additional networks.
“By working with LayerZero, we can deliver stable value seamlessly to new markets while preserving compliance from the start,” said David Weber, PayPal USD’s head of ecosystem.
Competitive Edge in the Stablecoin Market
The move comes as competition intensifies in the $270 billion stablecoin sector, where Tether (USDT) and Circle (USDC) maintain dominance. According to CoinGecko, PayPal’s stablecoin recently hit a market capitalization of $1.3 billion, its highest to date but still far behind Tether’s $171 billion and Circle’s $74 billion.
Despite the gap, PYUSD adoption is gaining traction. A survey by EY-Parthenon revealed that 36% of corporate respondents already use PYUSD, ranking it ahead of rivals such as Ethena’s USDe and Sky Protocol’s USDS, despite those tokens boasting larger overall market caps. Analysts say the expansion could significantly boost usage among corporate treasuries and decentralized applications.
“The US dollar is the anchor of global finance, and stablecoins are proving to be its most effective digital format,” said Bryan Pellegrino, CEO of LayerZero Labs. “With PYUSD0, we’re showing how borderless money can work in practice.”
PayPal’s Next Moves in Crypto
The payments giant is also advancing other crypto services. Recently, it launched PayPal Links, a peer-to-peer tool expected to support bitcoin, ether, and PYUSD transactions. With multi-chain functionality now integrated, PayPal is positioning itself not only as a fintech leader but also as a potential infrastructure provider in the tokenized economy.
