Expansion strengthens PYUSD’s interoperability and competitive position in global stablecoin markets
PayPal has expanded its PYUSD stablecoin across eight new blockchains, including Tron, Avalanche, Aptos, Abstract, Ink, Sei, Stable, and Stellar, marking its biggest push yet to strengthen adoption of digital dollars.
Permissionless PYUSD0 Launch
The move introduces PYUSD0, a permissionless version of the stablecoin fully fungible with the original PYUSD, according to blockchain infrastructure firm LayerZero. Through Stargate Hydra bridge, users will be able to seamlessly transfer PYUSD0 across supported networks, while LayerZero will manage minting and burning processes.
This development adds to PayPal’s existing integrations on Ethereum, Solana, Arbitrum, and now Stellar—making PYUSD one of the most widely accessible stablecoins in the industry.
Competing in the $295 Billion Stablecoin Market
The expansion comes as the U.S. Treasury projects the stablecoin market could grow from $295 billion today to $2 trillion by 2028. Analysts note that PayPal is positioning itself to compete with dominant players Tether (USDT, $171B market cap) and Circle’s USDC ($74B market cap).
Currently, PYUSD sits 11th in the rankings with a $1.3 billion market capitalization, trailing other top projects such as Ethena’s USDe and MakerDAO’s Dai.
Expert Views on Adoption
“Integrations like this make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock,” said Bryan Pellegrino, CEO of LayerZero Labs.
He added, “The result is better money experiences—anyone self-custodying PYUSD can move it seamlessly between chains without relying on traditional banking infrastructure.”
Industry watchers argue that PayPal’s network advantage and established brand could drive mainstream stablecoin adoption. The Stellar expansion, in particular, is expected to boost usage in developing markets where low fees and fast settlement are critical.
A Strategic Move for PayPal
Launched in 2023 and issued by Paxos, PYUSD represents PayPal’s most significant foray into crypto payments. By extending reach across multiple chains, the company is reinforcing its ambition to bridge traditional finance with Web3 ecosystems.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.