Ethereum

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PayPal USD

LayerZero

PayPal’s United States dollar-pegged stablecoin, PayPal USD (<a href="https://cointelegraph.com/paypal-pyusd-price-index" rel="noopener noreferrer nofollow" target="null">PYUSD</a>) has integrated with cross-blockchain bridging protocol LayerZero to enable transfers between Ethereum and Solana.&nbsp;
In a Nov. 12 <a href="https://medium.com/layerzero-ecosystem/paypal-usd-pyusd-integrates-layerzero-to-connect-across-chains-enabling-seamless-transfers-cde9b242ecdf" rel="noopener noreferrer nofollow" target="null">statement</a>, LayerZero said that PYUSD now uses its Omnichain Fungible Token (OFT) Standard to allow the crosschain transfers, which will “enable users who self-custody their tokens to seamlessly transfer assets between blockchains — without needing to rely on centralized platforms like Venmo or PayPal.”
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 <img alt="Stablecoin, Solana" src="https://s3.cointelegraph.com/uploads/2024-11/01932404-f86d-7ab7-be9e-4e8f29cf3fe2" title="">
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 Source: <a href="https://x.com/LayerZero_Core/status/1856487258943259134" rel="noopener noreferrer nofollow" target="null">LayerZero</a>
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PYUSD’s market capitalization and its distribution across the two blockchain networks have changed significantly in recent months.&nbsp;
On Aug. 26, PYUSD notched a <a href="https://cointelegraph.com/news/paypal-pyusd-stablecoin-1-billion-market-cap" rel="noopener noreferrer nofollow" target="null">record market cap of $1 billion</a>, with over $660 million circulating on the Solana network, while $340 million circulated on Ethereum.&nbsp;
As of the time of publication, the total market cap of PYUSD has nearly halved to $513 million, with just $166 million circulating on Solana, while $384 million is deployed on Ethereum, per DefiLlama <a href="https://defillama.com/stablecoin/paypal-usd" rel="noopener noreferrer nofollow" target="null">data</a>.&nbsp;
<figure>
 <img alt="Stablecoin, Solana" src="https://s3.cointelegraph.com/uploads/2024-11/01932405-488c-7cb3-a215-6a0ad2192fec" title="">
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 PYUSD circulation has surged on Ethereum. Source: DefiLlama
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PayPal has been taking steps to expand PYUSD’s accessibility, including <a href="https://cointelegraph.com/news/anchorage-adds-paypal-stablecoin-yield-custody-platform" rel="noopener noreferrer nofollow" target="null">working with Anchorage Digital to launch a rewards program</a> for clients who custody PayPal USD stablecoins with the crypto custodian.&nbsp;
Related: <a href="https://cointelegraph.com/news/detroit-residents-pay-taxes-with-crypto-from-mid-2025" rel="noopener noreferrer nofollow" target="null">Detroit residents will be able to pay taxes with crypto from mid-2025</a>
In May, PayPal launched PYUSD on Solana, <a href="https://newsroom.paypal-corp.com/2024-05-29-PayPal-USD-Stablecoin-Now-Available-on-Solana-Blockchain,-Providing-Faster,-Cheaper-Transactions-for-Consumers" rel="noopener noreferrer nofollow" target="null">partnering</a> with Crypto.com, Phantom and Paxos to on-ramp users onto the blockchain network.&nbsp;
It also <a href="https://newsroom.paypal-corp.com/2024-05-02-MoonPay-Now-Lets-Users-Buy-Sell-Crypto-funded-by-PayPal" rel="noopener noreferrer nofollow" target="null">partnered</a> with crypto infrastructure provider MoonPay to allow users to purchase cryptocurrency using a PayPal account. That partnership extended to <a href="https://cointelegraph.com/news/polymarket-clinches-moonpay-payments-partnership-amid-u-s-election-betting-frenzy" rel="noopener noreferrer nofollow" target="null">on-ramping users to crypto betting platform</a> Polymarket in July.
Coinbase — which has an institutional custody arm — incentivizes users to hold stablecoins on its platform. It currently offers about 5.2% annual percentage yield on USD Coin (<a href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow" target="null">USDC</a>). Coinbase owns an equity stake in the stablecoin’s issuer, Circle.&nbsp;
Despite its recent successes, PYUSD still lags behind dollar-pegged stablecoins Tether (<a href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow" target="null">USDT</a>) and USDC. According to data from CoinMarketCap, the two leading stablecoins <a href="https://coinmarketcap.com/view/stablecoin/" rel="noopener noreferrer" target="null">command</a> market capitalizations of nearly $118 billion and $35 billion, respectively.&nbsp;
Magazine: <a href="https://cointelegraph.com/magazine/hype-ai-agents-crypto-just-turned-into-reality/" rel="noopener noreferrer nofollow" target="null">AI agents trading crypto is a hot narrative, but beware of rookie mistakes</a>

PayPal USD links with LayerZero for transfers between Ethereum and Solana

Cointelegraph

Other articles published on Nov 13, 2024

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