TLDR
- PayPal’s PYUSD stablecoin expands to 9 new blockchains through LayerZero’s Stargate Hydra bridge
- Creates PYUSD0, a permissionless version working on Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable
- PYUSD supply increased from $520 million to $1.3 billion in 2025
- Now operates on 13 blockchain networks including Ethereum, Solana, Arbitrum, and Stellar
- PayPal ranks 11th in stablecoin market behind Tether ($171.2B) and Circle ($74.3B)
PayPal has announced a major expansion of its PYUSD stablecoin across nine additional blockchain networks through a partnership with interoperability protocol LayerZero. The move represents one of the largest multi-chain stablecoin deployments this year.
The integration utilizes LayerZero’s Stargate Hydra bridge system to create PYUSD0, a permissionless version that maintains complete interchangeability with the original PYUSD token. This expansion brings PYUSD to seven new networks: Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable.
Two existing community-issued versions on Berachain and Flow will automatically upgrade to the new PYUSD0 standard. PayPal simultaneously announced support for the Stellar blockchain in a separate integration, expanding the stablecoin’s total reach to 13 networks.
PYUSD was previously only available natively on Ethereum, Solana, and Arbitrum. The expansion puts PayPal in direct competition with industry leaders across multiple blockchain ecosystems.
Market Growth and Competition
PayPal’s stablecoin has experienced explosive growth since its August 2023 launch. PYUSD supply has more than doubled from approximately $520 million at the start of 2025 to its current $1.3 billion market capitalization.
The growth comes as the broader stablecoin market shows strong momentum. The US Treasury projected in April that the current $295 billion stablecoin sector could reach $2 trillion by 2028, driven by increasing institutional adoption and regulatory clarity.
However, PYUSD still faces an uphill battle against established competitors. Tether’s USDT dominates with a $171.2 billion market cap across 12 blockchains, while Circle’s USDC holds second place at $74.3 billion across 25 networks.
PYUSD currently ranks 11th in the stablecoin market, competing with tokens like Ethena USDe ($13.9 billion), USDS, and Dai ($4.5 billion). The multi-chain expansion aims to close this gap by increasing accessibility and utility.
Technical Infrastructure and Benefits
LayerZero’s integration enables seamless cross-chain transfers without traditional banking infrastructure dependencies. Users can move PYUSD0 tokens between supported networks while maintaining full self-custody of their assets.
The Stargate Hydra system manages PYUSD0 transfers, while LayerZero handles minting, burning, and deployment across different platforms. This infrastructure provides users with enhanced flexibility and reduced transfer costs.
The Stellar integration offers particular advantages with five-second transaction finality and minimal fees. This blockchain has gained popularity among users in developing countries seeking US dollar exposure.
LayerZero CEO Bryan Pellegrino emphasized that the integration demonstrates the emergence of a 24/7 global financial system. The company positions stablecoins as cryptocurrency’s primary mainstream application.
The expansion comes as regulatory frameworks improve for stablecoins. The GENIUS Act signed in July provides comprehensive US legislation for the sector, boosting institutional confidence.
PYUSD is issued by regulated blockchain infrastructure firm Paxos, adding credibility to PayPal’s cryptocurrency offering. The stablecoin represents PayPal’s most ambitious crypto project to date.
