Last updated on January 2nd, 2026 at 10:12 pm
Quick Breakdown
- PayPal expands PYUSD to Stellar and eight new blockchains, introducing a permissionless version (PYUSD0) via LayerZero.
- Stellar integration offers low-cost, fast transactions with adoption in developing economies.
- Expansion comes as the stablecoin market heads toward $2 trillion, with PYUSD competing against USDT and USDC.
LayerZero integration brings permissionless version of PYUSD0
Payments giant PayPal is broadening the reach of its stablecoin, PayPal USD (PYUSD), across eight new blockchains, in a move that strengthens its position in the competitive stablecoin market. Seven of these integrations come through LayerZero’s Stargate Hydra bridge, which introduces a permissionless version of the token, PYUSD0.
According to LayerZero, PYUSD0 will be “fully fungible” with PYUSD and operable across multiple blockchains. The supported networks include Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable, while existing versions on Berachain (BBYUSD) and Flow (USDF) will upgrade to PYUSD0.
PayPal built the first global digital payment network at the onset of the internet age. In 2023, they were the first major fintech company to launch a stablecoin with PYUSD.
With PYUSD0, PayPal and LayerZero are working to drive greater availability of PYUSD across blockchains. pic.twitter.com/CWOc2CP6sA
— LayerZero (@LayerZero_Core) September 18, 2025
Stellar adds native PYUSD support
In a separate announcement, PayPal confirmed that PYUSD is now live on the Stellar network, known for its low fees, five-second finality, and growing adoption among users in developing economies who prefer saving in dollar-backed stablecoins.
The expansion builds on PYUSD’s availability on Ethereum, Solana, and Arbitrum, making it one of the most widely accessible dollar-backed tokens in the ecosystem.
Growing stablecoin market
This move comes amid bullish growth projections for stablecoins. In April, the U.S. Treasury estimated the $295 billion stablecoin market could balloon to $2 trillion by 2028. Momentum accelerated in July when U.S. President Trump signed the GENIUS Act, a sweeping regulatory framework for stablecoins.
PayPal is looking to challenge market leaders Tether (USDT) and Circle’s USDC, which hold market caps of $171.2 billion and $74.3 billion, respectively, according to CoinGecko. In comparison, PYUSD ranks 11th with a $1.3 billion market cap.
Other stablecoins in the top five include Ethena USDe (USDE), USDS (USDS), and Dai (DAI), which range between $13.9 billion and $4.5 billion.
Stablecoins as “Crypto’s Killer App”
Commenting on the integration, LayerZero CEO Bryan Pellegrino said that PayPal’s expansion highlights the future of a global, borderless financial system that functions around the clock.
“Anyone who self-custodies their PYUSD can move it seamlessly between blockchains without needing to rely on centralized banking infrastructure,”
Pellegrino said.
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