Stablecoin PYUSD offered by PayPal now accessible on eight additional blockchain networks
In a significant move, PayPal has announced the expansion of its PayPal USD (PYUSD) stablecoin to eight new blockchains, marking its first major foray into the cryptocurrency space.
The new blockchains receiving PYUSD support include Tron, Avalanche, Aptos, Abstract, Ink, Sei, Stable, and Stellar. This expansion builds upon the native networks of Arbitrum, Solana, Ethereum, and Stellar, where PYUSD is already available.
The integration with LayerZero's Stargate Hydra Bridge will facilitate the transfer of PYUSD0 tokens between these networks, ensuring seamless interoperability. LayerZero will also enable the minting, burning, and deployment of PYUSD0 tokens across these blockchains.
PayPal's move into the stablecoin market comes as the US Treasury estimates the stablecoin market will grow from its current $295 billion to approximately $2 trillion by 2028. The stablecoin market is already competitive, with major players such as Tether (USDT) and Circle (USDC) holding market caps of $171.2 billion and $74.3 billion respectively. However, PYUSD currently ranks 11th among stablecoins with a market capitalization of $1.3 billion.
The new stablecoin version, PYUSD0, will be fully fungible and interoperable across blockchains, a feature that has been highlighted as crucial for creating "better money experiences utilizing modern technology" by LayerZero's CEO, Bryan Pellegrino. PYUSD is issued by Paxos, a regulated financial institution specializing in blockchain infrastructure.
The expansion also includes the addition of Stellar, known for its low fees and five-second transaction finality. Stellar has gained popularity in developing countries where people seek to save money in US dollars.
The GENIUS Act, signed by US President Trump in July, provides a regulatory framework for stablecoins, considered one of the most comprehensive stablecoin regulations to date. This regulatory environment may further encourage the growth and adoption of stablecoins like PYUSD.
In a statement, LayerZero's CEO described stablecoins as cryptocurrency's "killer app" and suggested that integrations like PayPal's indicate the start of a global financial market that breaks down borders and works around the clock. This integration is a significant step towards realizing that vision.
Other major competitors in the stablecoin market include Ethereum's Ethera USDe, USDS, and Dai, which have market caps ranging from $4.5 billion to $13.9 billion. However, the integration of LayerZero's technology with PayPal's stablecoin could potentially give PYUSD a competitive edge in the rapidly growing stablecoin market.
In conclusion, PayPal's expansion of its stablecoin to eight new blockchains through integration with LayerZero's Stargate Hydra Bridge is a significant move that could potentially reshape the stablecoin market. The integration promises to make PYUSD more accessible, interoperable, and competitive, positioning PayPal to capitalize on the expected growth of the stablecoin market in the coming years.
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