PayPal Connects Blockchains Using PYUSD, Transforming Stablecoin Liquidity and Reliability

PayPal's PYUSD stablecoin, developed by the payments leader, has made its debut on the

blockchain through and Stargate Hydra, representing a major milestone in the company’s initiative to extend cross-chain compatibility. With this rollout, PYUSD now joins a $1.2 billion stablecoin ecosystem, providing greater liquidity and usability across several blockchain platforms. The deployment uses a burn-and-mint protocol, allowing users to seamlessly and safely move PYUSD between and Aptos, removing the need for centralized exchanges or external bridge solutions. This approach is especially valuable for developers and users who aim to simplify cross-chain transfers while preserving token security.

This integration makes use of LayerZero’s sophisticated messaging technology to enable nearly instant transfers, with low gas fees and no reliance on wrapped tokens. When someone transfers PYUSD from Ethereum to Aptos, the tokens are destroyed on Ethereum and a matching amount is minted on Aptos, preventing issues like slippage and fragmented liquidity, and ensuring a unified PYUSD token across chains. The project also utilizes

smart contracts and has passed multiple security assessments by top blockchain security auditors, bolstering confidence in the platform.

An essential part of this expansion involves the adoption of Ethereum Improvement Proposals (EIPs), namely EIP-3009 and EIP-2612. EIP-3009 supports gasless transactions by letting users authorize transfers off-chain, while EIP-2612 allows token allowances to be set using off-chain signatures, making approvals simpler. Together, these standards lower barriers for users and decrease transaction costs, making PYUSD transfers easier and more cost-effective. These improvements are particularly useful for developers, who can now integrate PYUSD into their decentralized apps with fewer obstacles and lower expenses.

This initiative also matches current trends in the stablecoin sector, where seamless cross-chain operations are becoming more essential. The Aptos DeFi landscape, already backed by platforms such as Thala, LiquidSwap, and Amnis Finance, is poised to benefit from increased liquidity and innovative use cases brought by PYUSD. These platforms provide various services, from AMM-based decentralized trading to lending and liquid staking solutions. The addition of PYUSD could make the ecosystem even more appealing to liquidity providers and DeFi users.

LayerZero’s involvement also equips developers with a comprehensive set of APIs and tools to support cross-chain transfer integration. Ready-to-use code samples and development resources are provided to help incorporate PYUSD into applications, empowering developers to deliver quick, cost-effective, and secure cross-chain features. This streamlined integration process is expected to attract both independent developers and large DeFi projects, supporting the ongoing growth and diversification of the Aptos DeFi environment.

As the stablecoin landscape progresses, the introduction of PYUSD on Aptos highlights PayPal's dedication to advancing blockchain innovation and infrastructure. By adopting cross-chain technologies such as LayerZero and Stargate Hydra,

is contributing to a more interconnected and high-performing digital asset market. This development only supports the evolution of decentralized finance but also emphasizes the crucial role stablecoins play as a backbone of the Web3 ecosystem.