PayPal’s Stablecoin Expands to Nine New Chains

PayPal’s US dollar-pegged stablecoin is widening its reach, moving beyond its native networks through a new integration with LayerZero’s interoperability framework. The rollout introduces a permissionless version of the token, PYUSD0, to nine blockchains including Tron, Avalanche and Sei.

The move marks the biggest distribution step for PYUSD since its 2023 debut. With demand for cross-chain stablecoin transfers growing, the expansion is aimed at eliminating liquidity silos and ensuring fungibility across multiple ecosystems without forcing users to rely solely on PayPal’s own platform.

How PayPal’s Cross-Chain Stablecoin Works

PYUSD, issued by Paxos Trust Company, was originally confined to Ethereum, Solana, Arbitrum and Stellar. The newly launched PYUSD0 brings the token to Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, while community versions on Berachain and Flow will automatically upgrade. Users need not take action, as all versions remain redeemable 1:1 for U.S. dollars.

This expansion was enabled through Stargate, a bridge service that links more than 80 blockchains. LayerZero, which acquired Stargate last month, used its Hydra model to extend PYUSD to these nine additional networks.

“By working with LayerZero, we can deliver stable value seamlessly to new markets while preserving compliance from the start,” said David Weber, PayPal USD’s head of ecosystem.

PYUSD is now live on Stellar.⚡️Welcome to low-fee transfers, ~5s finality, anchors for fiat ramps, and Stellar Asset Contract-compatible contracts – built for real payments.#PYUSD #stablecoin https://t.co/qSUmT4GuXM

— PayPal Developer (@paypaldev) September 18, 2025

The permissionless design ensures developers and users alike can move the stablecoin across supported networks as easily as wrapped tokens like WBTC, but without additional friction.

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Analysts suggest that PayPal’s push could intensify competition in the $270-billion stablecoin sector, where Tether’s USDT and Circle’s USDC dominate. According to CoinGecko, PayPal’s stablecoin recently reached a market capitalization of about $1.3 billion, its highest level to date. That still pales in comparison to Tether’s $171 billion and Circle’s $74 billion.

Despite its smaller footprint, PYUSD is emerging as a notable option for companies. A survey by EY-Parthenon found that 36% of corporate respondents already use PYUSD, ranking it ahead of rivals such as Ethena’s USDe and Sky Protocol’s USDS, even though those tokens report larger overall market caps. The expansion could further boost adoption among corporate treasuries and decentralized applications.

“The US dollar is the anchor of global finance, and stablecoins are proving to be its most effective digital format,” said Bryan Pellegrino, CEO of LayerZero Labs. “With PYUSD0, we’re showing how borderless money can work in practice.”

Looking forward, PayPal’s broader distribution may accelerate adoption of its new crypto services. The firm recently introduced PayPal Links, a peer-to-peer tool expected to support bitcoin, ether and PYUSD transactions. If cross-chain functionality takes hold, the payments giant could reposition itself as not just a fintech leader, but a key infrastructure provider in the tokenized economy.