Awarded in PayPal’s US dollars, Stablecoin is moving beyond native networks and expanding its reach through new integrations with ReaLerzero’s interoperability framework. The rollout introduces unauthorized versions of Pyusd0 of tokens to nine blockchains, including tokens, avalanches, and SEI.
This move is PYUSD’s biggest distribution step since its debut in 2023. With the growing demand for cross-chain stubcoin transfers, the expansion aims to eliminate liquidity silos and ensure dependencies across multiple ecosystems, without forcing users to only PayPal’s own platform.
How PayPal’s Cross-Chain Stablecoin works
The Pyusd, published by the Paxos Trust Company, was originally limited to Ethereum, Solana, arbitrum, and stars. The newly launched PYUSD0 brings tokens to abstract, appropriate, avalanche, ink, SEI, stability, tron, and the community version of Bellachin and Flow will automatically upgrade. Users do not need to take action as all versions remain 1:1 redemption against US dollars.
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This extension is now enabled through Stargate, a bridge service that links over 80 blockchains. Layerzero, which acquired Stargate last month, expanded PYUSD to these nine additional networks using the Hydra model.
“Working with Layerzero allows us to seamlessly deliver stable value to new markets while still maintaining compliance from the start,” said David Weber, Head of Ecosystem at PayPal USD.
The authorized design allows developers and users to move Stablecoin across supported networks as easily as wrapped tokens like WBTC, but with no additional friction.
Stablecoin Race Rising Stocks
Analysts suggest that PayPal’s push could bolster competition in the $270 billion Stablecoin sector dominated by Tether’s USDT and Circle’s USDC. According to Coingecko, PayPal’s Stablecoin recently reached its highest level ever, at around $1.3 billion in market capitalization. Compared to Tether’s $171 billion and Circle’s $74 billion, that still pales.
Despite its small footprint, PYUSD has emerged as a prominent option for businesses. An Ey-Parthenon survey found that 36% of company respondents already use PYUSD, ranking ahead of their rivals, such as Ethena’s USDE and Sky Protocol’s USDS. This expansion could further enhance the adoption between the Finance Ministry and decentralized applications of companies.
“The US dollar is the anchor of global finance and Stable Coin has proven to be the most effective digital format,” said Bryan Pellegrino, CEO of Layerzero Labs. “PYUSD0 shows how borderless money actually works.”
Looking forward to it, the wider distribution of PayPal could accelerate the adoption of new crypto services. The company recently introduced PayPal Link, a peer-to-peer tool expected to support Bitcoin, ether and PYUSD transactions. If cross-chain capabilities become established, payment giants can reposition themselves not only as fintech leaders but as the leading infrastructure provider in the tokenized economy.
