PayPal is significantly widening the reach of its PayPal USD stablecoin (PYUSD), rolling it out to eight additional blockchains. Seven of these come through a collaboration with LayerZero’s Stargate Hydra bridge.
As part of the expansion, a permissionless version called PYUSD0 will be launched. According to LayerZero, PYUSD0 will remain fully interchangeable with PYUSD and function across multiple chains. The blockchains included in this wave are Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable. In addition, existing stablecoin versions on Berachain (BBYUSD) and Flow (USDF) will be upgraded to PYUSD0.
Separately, PayPal also confirmed that PYUSD is now available on Stellar, a network known for fast, low-cost transactions and heavy adoption in developing regions where users rely on dollar savings.
Stargate Hydra will facilitate cross-chain transfers of PYUSD0, while LayerZero technology will manage minting, burning, and deployment processes.
This builds on PayPal’s earlier integrations with Ethereum, Solana, Arbitrum, and now Stellar—positioning PYUSD among the most widely distributed stablecoins in the ecosystem.
Growing Stablecoin Market
The expansion arrives as the U.S. Treasury projects that the stablecoin sector, currently worth around $295 billion, could balloon to $2 trillion by 2028. That forecast was further reinforced in July when U.S. President Donald Trump signed the GENIUS Act, one of the most comprehensive pieces of legislation focused on stablecoins.
Despite its momentum, PYUSD still trails industry leaders. Data from CoinGecko shows Tether (USDT) with a market cap of about $171.2 billion across 12 chains, while Circle’s USDC runs on 25 blockchains with $74.3 billion in circulation. By comparison, PYUSD ranks 11th, holding around $1.3 billion.
Other top competitors include Ethena’s USDe, USDS, and Dai (DAI), with market caps ranging from $13.9 billion down to $4.5 billion.
“The Start of a Borderless Financial Market”
Bryan Pellegrino, CEO of LayerZero Labs, highlighted the significance of PayPal’s expansion:
“These kinds of integrations mark the beginning of a truly global financial system—borderless and always open. The end result is a smoother, more modern money experience.”
He added that self-custody users will be able to shift their PYUSD between blockchains freely, without depending on banks or centralized intermediaries.
Background on PYUSD
PayPal introduced PYUSD in August 2023, issued in partnership with Paxos, as part of its first major push into the digital asset space. The latest multi-chain expansion underscores PayPal’s intention to remain competitive in the stablecoin race and make PYUSD one of the most accessible tokens in the market.
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