PayPal is partnering with LayerZero to expand its stablecoin, PayPal USD (PYUSD), to newer chains, including Tron, Avalanche, Aptos, Ink, Sei, and Stable.
PayPal plans to expand its PYUSD stablecoin to newer blockchains, including Tron, Avalanche, and Aptos, in collaboration with interoperability protocol LayerZero, according to a statement on Thursday.
The stablecoin will be rolled out across various networks via the bridging platform Stargate Hydra as a permissionless token, PYUSD0, utilizing LayerZero's Omnichain Fungible Token (OFT) standard.
"By working together, we will enable PYUSD to reach new markets faster while maintaining compliance and composability from day one," said David Weber, Head of Ecosystem for PayPal USD.
LayerZero will enable the minting, burning, and deployment of PYUSD0 across new blockchains, while preserving composability with all existing networks and applications.
PYUSD0 will remain fully fungible and interoperable with native PYUSD, ensuring that it maintains a stable peg with the US Dollar. Holders can also move their PYUSD seamlessly across blockchains when in self-custody, without relying on traditional centralized banking infrastructure.
"As the stablecoin market continues its rapid growth beyond $270 billion, innovations like this are essential for creating the seamless, interoperable financial infrastructure that users and developers demand," Weber added.
Aptos claims to be the Move-chain launch partner for PYUSD0, combining its infrastructure with PYUSD's liquidity to support real-world payments.
PayPal was among the first mainstream fintech firms to roll out a stablecoin in 2023 with the launch of PYUSD initially on Ethereum before expanding to Solana and Arbitrum.
Other fintech companies have since followed the trend, including Fiserv, which announced in June that it will launch its FIUSD stablecoin by the end of the year.
The move reflects an increased demand for stablecoins since the passage of the GENIUS Act in July.
Top financial firms, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, have all expressed interest in stablecoins.