PayPal's stablecoin is expanding to nine new blockchains, teaming up with LayerZero to become an omnichain Token , and is about to enter the P2P payments space with crypto support.
PayPal's PYUSD expands to 9 new blockchains with LayerZero. Photo: Yahoo Finance
PYUSD integrates with 9 new blockchains
- PayPal USD (PYUSD) - stablecoin issued by Paxos Trust Company - officially expands to 9 new blockchains through integration with LayerZero 's Stargate Hydra bridge .
- Initially, PYUSD was only released on Ethereum, then deployed on Solana , Arbitrum and recently Stellar. With this expansion, a permissionless version called PYUSD0 will be launched on Abstract, Aptos, Avalanche, Ink, Sei, Stable and TRON .
- Previous community-released versions such as BYUSD on Berachain and USDF on Flow will also automatically upgrade to PYUSD0.
- PYUSD0 uses LayerZero's OFT (Omnichain Fungible Token ) standard, deployed through the Stargate Hydra system. Thanks to that, PYUSD0 swaps 1:1 with the original PYUSD, ensuring that no matter which chain the user holds, it is the same stablecoin, which can be converted directly to USD.
- The highlight is the permissionless mechanism that eliminates the need to depend on centralized demand, reduces liquidation Shard , and helps users move assets between multiple chains smoothly.
- In which, TRON is considered a strategic destination, because this network owns 332 million accounts, processes an Medium of 9 million transactions/day, and has the top TVL - making it a "fertile Shard " for PYUSD to quickly expand.
Growth but still modest
- Launched in 2023, PYUSD has recorded impressive growth. From a supply of only 520 million USD in early 2025, it has now broken through to 1.3 billion USD.
Source: RWA.xyz
- However, this number is still quite small compared to the two stablecoin giants, Tether 's USDT and Circle 's USDC - which have Capital of tens of billions of dollars. In addition, USDT has also released its omnichain version USDT0 on LayerZero, directly putting PYUSD in competition.
New payment gateway
- PayPal also recently announced the PayPal Links feature - allowing users to create personalized payment links to send/receive money, even if the recipient does not have a PayPal account. These links are valid for 10 days and have helped PayPal record strong growth in the P2P segment, with an increase of nearly 10% YoY in Q2/2025.
- In the near future, PayPal will integrate crypto directly into PayPal Links, supporting Bitcoin, Ethereum, PYUSD and many other digital assets, applicable on PayPal, Venmo and compatible wallets globally. Notably, these personal P2P transactions will not trigger 1099-K tax reporting in the US, reducing a major barrier for users.
- In addition, the giant has just launched the “Pay with Crypto” service , allowing US businesses to accept more than 100 cryptocurrencies and automatically convert to the stablecoin PYUSD.
- The prospects are so great, but observers still give two main risk warnings:
Regulation: Stablecoins are under intense scrutiny from global regulators. A “permissionless” version like PYUSD0 raises questions about how PayPal and LayerZero will ensure compliance.
Technical risks: complex cross-chain systems can be prone to errors or vulnerabilities, affecting security and user trust.
- David Weber, Ecosystem Director of PayPal USD, affirmed: “By partnering with LayerZero, we will help PYUSD reach new markets faster, while maintaining compliance and integration capabilities from day one.”
Coin68 synthesis
