PayPal Expands PYUSD Across Nine Blockchains With LayerZero Integration

The new format is built on LayerZero’s Omnichain Fungible Token (OFT) standard. According to the announcement, PYUSD0 is fully fungible with existing PYUSD, and holders of the stablecoin do not need to take any action. All tokens remain interchangeable, and the transition happens at the protocol level rather than requiring user-initiated conversions. This upgrade is meant to simplify how the stablecoin operates across networks. Rather than relying on multiple wrapped or bridged versions, PYUSD0 is designed to exist as a single asset distributed across chains. The model seeks to reduce the technical barriers that often limit liquidity and complicate user experience when stablecoins expand into new ecosystems.

Prior to the integration, PYUSD was available on Ethereum, Solana, Arbitrum, and Stellar. With LayerZero’s support, it is now being extended to Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. In addition, existing community or permissioned stablecoins such as Berachain’s BYUSD and Flow’s USDF will be upgraded into PYUSD0, ensuring consistency across all deployments. This makes PayPal’s stablecoin one of the most widely distributed dollar-pegged assets, present across a mix of established networks and newer entrants in the blockchain landscape. The move reflects a growing recognition that stablecoins must be accessible in diverse ecosystems where users, developers, and applications are increasingly distributed.

PYUSD remains issued by Paxos Trust Company, LLC, a regulated financial institution supervised by the New York State Department of Financial Services. The stablecoin is fully backed by U.S. dollar deposits, U.S. Treasuries, and cash equivalents. Holders who have direct redemption rights through PayPal, Paxos, or authorized partners can redeem PYUSD at a 1:1 rate for U.S. dollars. For others, redemption may take place via open market channels. This framework underpins confidence in PYUSD as a fiat-backed digital asset.

The LayerZero announcement also outlines important risk factors. As with all blockchain-based assets, custody and network risks apply. Users are responsible for safeguarding private keys, and transactions on decentralized networks remain irreversible once executed. Regulatory uncertainty is another concern. While Paxos is regulated in New York, rules for stablecoins differ widely across jurisdictions and continue to evolve. Future changes in law could affect where and how PYUSD is offered. The disclosure also emphasizes that stablecoins like PYUSD are not insured by government programs such as the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. As a result, users need to consider the risks involved when holding digital assets.

The introduction of PYUSD0 comes at a time when interoperability is increasingly viewed as essential to the future of digital finance. Stablecoins serve as a foundational layer for payments, lending, trading, and decentralized applications. Their usefulness often depends on whether they can move efficiently between different platforms. By creating a unified model for its stablecoin, PayPal is attempting to position PYUSD as a cross-ecosystem asset rather than one limited to a single chain.

For developers, this expansion may make it easier to design applications that work across networks without needing to support multiple token formats. For end users, it could mean faster transfers, simplified access to services, and reduced reliance on third-party bridges. While these are potential benefits rather than guarantees, the design of PYUSD0 is intended to address long-standing challenges in multi-chain adoption.

The move also illustrates how large financial brands are approaching blockchain integration. Rather than focusing on speculative products, PayPal has emphasized stability and compliance, with its stablecoin tied directly to U.S. dollars and overseen by a regulated trust company. By aligning with LayerZero, it is also signaling that interoperability will be a competitive factor in the stablecoin market. As more companies issue or expand their own stablecoins, the ability to function seamlessly across multiple chains could be a deciding factor in which tokens gain widespread adoption. While challenges remain, including regulatory harmonization, infrastructure maturity, and security risks, the step taken with PYUSD0 marks a notable advance in how fiat-backed assets are distributed on blockchain rails.

The launch of PYUSD0 demonstrates PayPal’s intention to grow its stablecoin into a cross-chain instrument with broad utility. Built on LayerZero’s Stargate Hydra model, it allows the same token to move freely across multiple ecosystems without losing its core redeemability or regulatory backing. For users, developers, and financial institutions, this represents a shift toward more integrated digital money. Whether it achieves mass adoption will depend on how quickly the new format is embraced in decentralized finance, payments, and broader blockchain applications. But with PayPal and LayerZero collaborating, PYUSD0 sets an example of how stablecoins may evolve in an increasingly multi-chain world.