TL;DR

• PYUSD goes cross-chain: PayPal launches PYUSD0, a permissionless version of its USD stablecoin.
• LayerZero-powered: Expansion uses Stargate Hydra bridge to connect eight new blockchains.
• Chains supported: Tron, Avalanche, Aptos, Abstract, Ink, Sei, Stable + upgrades for Berachain and Flow.
• Unified experience: PYUSD and PYUSD0 are fully fungible and interoperable, no user action needed.
• Bigger reach: PYUSD is now available on Ethereum, Solana, Arbitrum, Stellar, and eight more chains.
• Market context: PYUSD’s $1.3B market cap still trails USDT ($171B) and USDC ($74B), but expansion signals ambition.

PayPal is stepping up its stablecoin game. The payments giant just expanded PayPal USD (PYUSD) to eight new blockchains, using LayerZero’s Stargate Hydra bridge to make its stablecoin truly omnichain.

This update introduces PYUSD0, a permissionless version of PayPal’s USD stablecoin. What makes it unique is that it’s fully fungible with the original PYUSD meaning whether you hold PYUSD or PYUSD0, it’s all the same dollar-backed asset.

What Is PYUSD0?

PYUSD0 is essentially PayPal USD but available on more chains, with no extra steps required by users. Before this move, PYUSD was natively available on Ethereum, Solana, Arbitrum, and just recently Stellar. With PYUSD0, it now reaches Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron with more integrations on the way.

Existing versions on Berachain (BYUSD) and Flow (USDF) will also upgrade to PYUSD0 automatically.
For everyday users, this means:

• Easier transfers: Move stablecoins across blockchains without swapping or bridging manually.
• More access points: Use PYUSD in apps built on more than 140 chains supported by LayerZero.
• Lower friction: Developers can integrate PYUSD into their apps without worrying about chain compatibility.

LayerZero’s Role - Making Stablecoins Truly Cross-Chain

LayerZero’s Stargate Hydra is doing the heavy lifting here. It acts as the interface for transferring PYUSD0 between chains, while LayerZero enables minting, burning, and deploying the stablecoin in a way that’s fully permissionless.

For crypto developers, this unlocks new opportunities: they can integrate a PayPal-branded stablecoin into their apps across multiple chains without building custom bridges.

For users, it’s a trust play: they can now move their PayPal USD almost anywhere in crypto, while relying on the security model of LayerZero and PayPal’s compliance standards.

The Bigger Picture - Stablecoin Competition Heats Up

Even with this expansion, PYUSD’s market cap currently around $1.3 billion which is still far behind industry leaders.

• Tether (USDT): $171B market cap, available on 12 blockchains.
• USDC (Circle): $74B market cap, available on 25 blockchains.

But PayPal is playing a different game. Rather than rushing to match chain count, it is building a compliant, interoperable stablecoin that works seamlessly across the ecosystem.

By aligning with LayerZero and embracing permissionless distribution, PayPal is betting that cross-chain interoperability will be key to stablecoin adoption, especially for developers building dApps that need universal liquidity.

Why This Matters

For the crypto ecosystem, this move signals a new era of mainstream fintech stablecoins going omnichain.

• For users: This reduces friction. PYUSD can be used for DeFi, payments, or transfers without worrying which chain it’s on.
• For developers: This creates a unified stablecoin liquidity layer that can be tapped into across chains.
• For the market: It shows that stablecoin competition is evolving from just supply size to distribution quality.

This might also help PayPal catch up with USDT and USDC in adoption. Stablecoins are one of the most used crypto assets today, with over $270 billion in circulation, according to DefiLlama.

Future Outlook

The launch of PYUSD0 and the partnership with LayerZero is likely just the start. PayPal has already hinted at more chain integrations and deeper composability for developers.

If successful, PayPal could position PYUSD as the first major mainstream-backed omnichain stablecoin, challenging not just crypto-native issuers but also traditional payment rails.