PayPal USD Now Integrates LayerZero for Blockchain Transfers by Pedrobungo
PayPal’s stablecoin, PayPal USD, just took the giant leap in integrating LayerZero’s cross-chain bridging protocol into the ability to transfer between Ethereum and Solana networks with much more ease. Indication here being that a shift into more usage of decentralized infrastructure is in place whereby holders are able to transfer the assets across those major blockchain ecosystems without necessarily going through traditional centralized platforms such as PayPal’s very own or Venmo. With the growing importance of interoperability between blockchains on behalf of users, this deal increases the functionality and usability of PYUSD within the digital asset vertical.
LayerZero’s OFT Standard Enables Crosschain Interoperability
At the heart of this new functionality is LayerZero’s Omnichain Fungible Token, or OFT, Standard, a solution that allows PYUSD to move flawlessly between Ethereum and Solana. By utilizing the standard, the self-custodial end-users of PYUSD tokens can bridge their tokens between chains, thereby providing a more seamless user experience. That integration, of course, is very beneficial to the crypto community who believe in self-custody and removes requirements for third-party custodians to facilitate such transfers. The better interoperability increases the potential use cases of stablecoins that are increasingly deeply integrated within blockchain ecosystems.
PYUSD’s Market Cap Shifts Across Blockchains
PYUSD’s market capitalization and blockchain distribution have seen significant shifts over the last few months. It peaked at a market cap of $1 billion on August 26, with $660 million circulating on the Solana network and $340 million on Ethereum. Since then, that figure has retreated to $513 million, with $166 million now in circulation on Solana and $384 million on Ethereum, per DefiLlama data. Meanwhile, changes in demand and utility across blockchains sharpen into view, as stablecoin distribution keeps on being dynamic.
Increased Accessibility via Strategic Partnerships
In addition to the LayerZero integration, PayPal has increased the access to PYUSD through integrations with Anchorage Digital, Crypto.com, Phantom, Paxos, and others, and MoonPay, who have integrated the functionality of buying cryptocurrency directly with a PayPal account. Each of these new integrations reduces the barrier further for new users to access PYUSD and creates new incentives to use PayPal’s stablecoin within a variety of platforms and applications.
Position of PYUSD in the Stablecoin Market
Although it has gained rapid traction and developed innovative cross-chain functionality, the market capitalization of PYUSD remains a fraction of leading stablecoins, such as Tether’s USDT, capitalized at $118 billion, and USD Coin, capitalized at $35 billion. Still, the strategic moves that PayPal has been up to tend to support its commitment toward strengthening the role of PYUSD in the emerging cryptocurrency market as versatile and interoperable.
