PayPal's PYUSD Stablecoin Expands to 8 New Blockchains
PayPal USD (PYUSD) Broadens Blockchain Reach
PayPal USD (PYUSD), the stablecoin from payments giant PayPal, is now integrated with eight additional blockchains. This expansion leverages LayerZero's Stargate Hydra bridge, facilitating decentralized and permissionless asset transfers across chains.
PYUSD0: A New Iteration for Enhanced Compatibility
The upgrade involves the launch of PYUSD0, a new version of the stablecoin designed to be fully fungible with the original PYUSD. According to LayerZero, PYUSD0 enhances compatibility across various blockchains, streamlining transactions for both developers and users.
Initially launched on Ethereum, Solana, Arbitrum, and Stellar, PYUSD0 is now also available on Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. Furthermore, existing versions of the stablecoin on Flow and Berachain will be updated to PYUSD0 without requiring user intervention.
Increased Accessibility Through LayerZero
This move aims to broaden access to PYUSD. Utilizing LayerZero's infrastructure, PYUSD will be accessible on over 140 blockchains, enabling faster market entry. Developers can integrate the PayPal-branded, dollar-pegged stablecoin into decentralized applications, allowing users to transfer stable value across ecosystems without traditional bank accounts.
David Weber, Head of Ecosystem at PayPal USD, emphasized the need for interoperable and flexible stablecoin solutions. He highlighted the importance of rapidly entering new markets while maintaining compliance and technical compatibility.
Hydra Model Facilitates Scalability
PayPal's introduction of PYUSD in 2023 marked a significant step in the digitalization of money transfer, making it one of the first major fintech companies to issue a stablecoin. The transition to PYUSD0 signifies full multi-chain compliance, addressing the growing global demand for digital assets backed by real-world value.
LayerZero's Stargate, with its Hydra model, played a crucial role in this transition. This model connects a central blockchain (Hydra) to multiple spoke blockchains, enabling PYUSD to be implemented across different networks with greater scalability and flexibility.
Bryan Pellegrino, CEO of LayerZero Labs, noted the broader implications of this expansion, defining stablecoins as a foundational element in the crypto economy. He emphasized that cross-chain functionality is essential for the future of the global financial system. Stablecoins are evolving beyond crypto trading to become vital components of a more connected and borderless financial system, supporting 24/7 operations independently of traditional infrastructure.