PayPal’s dollar-pegged stablecoin, PayPal USD (PYUSD), has advanced its functionality by integrating with LayerZero’s cross-chain bridging protocol. Now, users can transfer PYUSD directly between the Ethereum and Solana networks without using centralized platforms like Venmo or PayPal. LayerZero introduced the Omnichain Fungible Token (OFT) Standard to enable this feature, announcing the update on Nov. 12. This marks a significant step in increasing the stablecoin’s accessibility across different blockchain networks.
PYUSD Circulation Trends and Market Capitalization
PYUSD’s market cap and distribution have fluctuated across Ethereum and Solana. On Aug. 26, the stablecoin reached a peak market cap of $1 billion, with $660 million on Solana and $340 million on Ethereum. However, the current total market cap has fallen to $513 million, with $166 million on Solana and $384 million on Ethereum, as reported by DefiLlama.
Expanding PYUSD’s Use and Accessibility
PayPal continues its efforts to expand PYUSD’s use through partnerships and platform integrations. Earlier this year, PayPal partnered with Anchorage Digital to launch a rewards program for PYUSD custodians. The stablecoin also launched on Solana in May, with collaborations involving Crypto.com, Phantom, and Paxos to make on-ramping easier for new users. Additionally, MoonPay partnerships now enable users to purchase cryptocurrency directly via PayPal. By July, MoonPay extended PYUSD’s reach to Polymarket, a crypto betting platform.
Stablecoin Market and Competition
Despite its growing adoption, PYUSD still trails behind leading stablecoins like Tether (USDT) and USD Coin (USDC), with market caps of approximately $118 billion and $35 billion, respectively. Coinbase, a major player with an equity stake in Circle, USDC’s issuer, currently offers a 5.2% annual yield on USDC holdings. This incentive encourages users to keep funds on the platform, strengthening USDC’s competitive position.
In summary, the integration with LayerZero underscores PayPal’s dedication to making PYUSD accessible across blockchain networks. By bridging Ethereum and Solana, PayPal is positioning PYUSD as a serious competitor in the expanding stablecoin ecosystem.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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