PayPal Expands Stablecoin Integration Across Multiple Blockchain Platforms In this article, PayPal has announced the addition of stablecoin integration on various blockchain networks, including Tron and Avalanche, along with six other chains. This expans

PayPal extends Stablecoin Reach to Eight New blockchains

September 19, 2025

San Francisco, CA – September 19, 2025 – PayPal is significantly expanding the utility of its U.S. Dollar-backed stablecoin, PayPal USD (PYUSD), by integrating it with eight additional blockchains. This expansion, announced Thursday, leverages the Stargate Hydra layer of the LayerZero protocol, aiming to enhance interoperability and accessibility within the rapidly evolving digital currency landscape.

Expanding the PYUSD Ecosystem

The integration introduces a permissioned version of PYUSD, labeled PYUSD0, designed to be entirely compatible with the original PYUSD and seamlessly transferable across the newly supported blockchains. These include Tron, Avalanche, Aptos, Abstract, ink, Sei, and Stable. Furthermore, existing versions of PYUSD on Berachain (BbyUSD) and Flow (USDF) will be upgraded to the Pyusd0 standard.

In a separate progress, PayPal has also integrated PYUSD into the Stellar network, further broadening its reach. Stargate Hydra will serve as the primary interface for PYUSD0 transfers, while LayerZero will handle the minting, burning, and deployment processes. This move positions PayPal as a key player in the stablecoin market, now supporting Ethereum, Solana, Arbitrum, Stellar, and these newly added blockchains.

Stablecoin Market Growth and regulatory Impact

This expansion comes as the stablecoin market is poised for considerable growth. The U.S. Treasury Department estimated in April that the market could reach $2 trillion by 2028. This projection received a boost in July with the enactment of new legislation designed to provide a clearer regulatory framework for stablecoins.

Did You Know? The global stablecoin market capitalization exceeded $150 billion in early 2024, demonstrating increasing trust and adoption of these digital assets.

PYUSD’s position in a Competitive Landscape

Despite this expansion, PYUSD currently holds a smaller market share compared to established stablecoins like Tether (USDT) and Circle (USDC). According to recent data, USDT boasts a market capitalization of approximately $171.2 billion, while USDC stands at $74.3 billion. Other notable stablecoins include Ethena USD (USDe), USDS, and DAI, with market caps ranging from $4.5 billion to $13.9 billion. Currently, PYUSD’s market capitalization is around $1.3 billion.

Stablecoin	Market Capitalization (USD)	Supported Blockchains
Tether (USDT)	$171.2 Billion	12
Circle (USDC)	$74.3 Billion	25
PayPal USD (PYUSD)	$1.3 Billion	Growing (Currently >10)

Bryan Pellegrino, CEO of LayerZero Labs, emphasized the transformative potential of these integrations, stating they signal the dawn of a global, borderless, and 24/7 financial market. He added that the technology enables seamless movement of PYUSD across blockchains, bypassing conventional banking infrastructure.

Pro Tip: When considering stablecoins, always research the issuer, the backing assets, and the audit reports to assess the risk involved.

Stellar Integration Targets Emerging Markets

The integration with Stellar is particularly noteworthy, given its low transaction fees and rapid settlement times. Stellar is gaining traction in developing countries, where individuals are increasingly using the blockchain to save in U.S. dollars.

PayPal launched PYUSD in August 2023, marking its significant entry into the cryptocurrency space. The stablecoin is issued by Paxos Trust Company.

The Future of Stablecoins

Stablecoins are increasingly viewed as a critical component of the expanding digital economy. Their ability to bridge the gap between traditional finance and the decentralized world of crypto positions them for continued growth and innovation. Factors influencing their future include regulatory clarity,technological advancements,and broader adoption by institutions and consumers. The ongoing development of interoperability solutions, like those from LayerZero, will be crucial for unlocking the full potential of stablecoins.

What role do you foresee stablecoins playing in the future of global finance? How will increased interoperability impact their adoption?

Frequently Asked Questions about PYUSD

• What is PayPal USD (PYUSD)? PYUSD is a stablecoin issued by PayPal, designed to maintain a 1:1 peg with the U.S. dollar.
• What blockchains does PYUSD now support? PYUSD now supports Ethereum, Solana, Arbitrum, Stellar, Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable.
• What is LayerZero’s role in this expansion? LayerZero’s technology enables the seamless transfer of PYUSD across different blockchains.
• How does this impact users? Users can now leverage PYUSD across a wider range of decentralized applications and platforms.
• Is PYUSD secure? PYUSD is backed by U.S. dollar reserves held by Paxos Trust Company and is subject to regulatory oversight.
• What are the benefits of using a stablecoin like PYUSD? Stablecoins offer price stability compared to other cryptocurrencies,making them suitable for everyday transactions.

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PayPal Expands stablecoin Integration Across Multiple Blockchain Platforms

Expanding the Cryptocurrency Ecosystem

PayPal’s recent proclamation to integrate stablecoin functionality across eight additional blockchain networks – including Tron (TRX), Avalanche (AVAX), and others – marks a meaningful step in the evolution of digital payments. This expansion goes beyond simply supporting cryptocurrency; it’s about building a more interconnected and accessible financial system. The move directly addresses user demand for greater adaptability and interoperability within the decentralized finance (DeFi) space.

Supported Stablecoins and Networks

Currently, PayPal’s expanded stablecoin support encompasses a range of popular options:

* USDD: A Tron-based stablecoin pegged to the US dollar.

* USDC: Circle’s widely adopted USD Coin, known for its clarity and regulatory compliance.

* paxos-backed USDP: Paxos Trust Company’s stablecoin, offering a secure and regulated digital dollar.

* TrueUSD: Another prominent USD-backed stablecoin focused on transparency and verification.

The eight blockchains now supported alongside existing networks include:

1. Ethereum
2. Solana
3. Polygon
4. Tron
5. Avalanche
6. Near
7. Optimism
8. Arbitrum

This multi-chain approach is crucial. It avoids locking users into a single ecosystem and allows for optimized transaction speeds and lower fees depending on the chosen network.

Benefits of PayPal’s Expanded Integration

The benefits of this expansion are multifaceted, impacting both PayPal users and the broader cryptocurrency landscape:

* Increased Accessibility: More users can now participate in the stablecoin economy through a trusted platform like PayPal.

* Reduced Transaction Costs: Utilizing different blockchains allows users to choose networks with lower gas fees, making smaller transactions more viable.

* Faster Transaction Speeds: Some blockchains offer significantly faster transaction confirmation times compared to others,improving the user experience.

* Enhanced Interoperability: The ability to move stablecoins across multiple chains opens up new possibilities for DeFi applications and cross-chain transactions.

* Safer Transactions: Stablecoins, pegged to fiat currencies, offer a more stable value proposition compared to volatile cryptocurrencies, reducing risk for users.

Understanding Stablecoins: A Key to