- PayPal’ PYUSD0 expands to eight chains with LayerZero tech, boosting multi-chain adoption.
- Stablecoin rivals USDT and USDC face new competition as PYUSD0 gains broader access.
- GENIUS Act oversight strengthens PYUSD0’s role as a regulated stablecoin in global markets.
PayPal introduced a permissionless version of its stablecoin, PYUSD0, through LayerZero’s Stargate Hydra. The launch extends PayPal USD beyond Ethereum, Solana, Arbitrum, and Stellar to eight additional chains, including Tron, Avalanche, Aptos, and Sei. The expansion comes as the U.S. Treasury projects the stablecoin market could reach $2 trillion by 2028.
Multi-Chain Expansion
According to LayerZero, PYUSD0 will be “fully fungible” with PYUSD, enabling seamless use across supported blockchains. The rollout adds Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron while upgrading Berachain’s BYUSD and Flow’s USDF to PYUSD0.
Notably, no action is required by holders, since both versions remain interchangeable and redeemable one-to-one for U.S. dollars. The design uses LayerZero’s Omnichain Fungible Token standard and Stargate Hydra’s mint-and-burn model.
This system eliminates liquidity fragmentation by allowing users to move assets without slippage or centralized intermediaries. Bryan Pellegrino, Co-Founder and CEO of LayerZero Labs, stated that PYUSD0 will showcase how borderless money can work in practice.
Competition with USDT and USDC
On the other hand, the launch intensifies competition with market leaders USDT and USDC, dominating with a combined supply that exceeds $140 billion. Tether recently launched USDT0, also using LayerZero’s omnichain model, while Circle’s USDC spans 25 blockchains.
Comparatively, PYUSD currently circulates at 1.9 billion, ranking 11th among stablecoins, according to LayerZero’s disclosure. Expanding to Tron, the leading chain for stablecoin transfers, and Avalanche, a major DeFi network, may help accelerate adoption.
Sei, optimized for trading, offers additional growth potential in high-frequency financial applications. According to David Weber, Head of Ecosystem at PayPal USD, the rollout enables PYUSD to “reach new markets faster while maintaining compliance and composability from day one.”
Related: Are Stablecoins Reshaping Global Monetary Policy?
Policy Pressure and Market Outlook
PayPal’s move comes as regulators worldwide continue oversight of dollar-backed stablecoins. In July, U.S. President Donald Trump signed the GENIUS Act, creating one of the most comprehensive frameworks for stablecoin issuers.
The law could change adoption across U.S. and European markets, where regulatory clarity is tightening standards for dollar-pegged tokens. The expansion also shows the role of regulated issuers in a largely permissionless sector.
Paxos Trust Company issues PYUSD under U.S. oversight, while LayerZero and Stargate provide the interoperability rails. Analysts view this model as a test of whether traditional financial firms can scale stablecoin use without regulatory delays.
Meanwhile, Aptos confirmed its role as launch partner on X, noting its $70 billion monthly stablecoin volume could boost PYUSD usage. Aptos also noted that PYUSD0’s launch on its Move-chain strengthens the network’s position as a hub for stablecoin activity.
By joining existing assets like USDC, USDT, and USDe, PYUSD0 enhances liquidity and broadens settlement options across Aptos. The integration offers developers and institutions a regulated dollar alternative, expanding payments, lending, and DeFi applications within the Aptos market. Further, PayPal also introduced PayPal Links earlier this week, a P2P service that will support Bitcoin, Ether, and PYUSD.
With Aptos as a key Move-chain partner and regulatory frameworks like the GENIUS Act influencing adoption, PYUSD0 positions PayPal within the projected $2 trillion stablecoin market.
