PayPal is expanding the reach of its stablecoin. Using LayerZero’s interoperability rails, PYUSD is launching onto nine new chains, including Tron and Avalanche, in a strategic move to capture market share from native ecosystem stablecoins.
Summary
- PayPal expands PYUSD to nine new blockchains, including Tron and Avalanche, via LayerZero.
- The launch introduces PYUSD0, a fungible standard unifying liquidity across supported chains.
According to an announcement on September 18, the interoperability protocol LayerZero is now the primary rail for PayPal’s stablecoin expansion. This technical integration, utilizing LayerZero’s Stargate Hydra model, deploys a new permissionless token standard, PYUSD0, onto nine additional blockchains.
The move strategically positions PYUSD on high-throughput ecosystems like Tron, Avalanche, Abstract, Sei, Stable and Aptos, directly inserting the PayPal-branded dollar into competitive markets long dominated by native stablecoins.
What PYUSD0 means for PayPal’s stablecoin push
PayPal’s expansion is powered by a new technical standard dubbed PYUSD0, which is far more significant than a simple wrapped token. The omnichain fungible token standard, native to LayerZero’s protocol, ensures that the asset on a chain like Tron is not a mere derivative but is the exact same, fully fungible PYUSD held on Ethereum or Solana.
Crucially, users do not need to distinguish between PYUSD and PYUSD0. Both are fungible and redeemable at parity, creating a single liquidity pool across every supported blockchain. For PayPal, this represents a fundamental upgrade from operating isolated deployments to managing a single, omnipresent asset.
“With PYUSD0, PayPal USD expands its reach and flexibility to work across today’s networks and tomorrow’s. Launches like this make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock.” Bryan Pellegrino, Co-Founder and CEO, LayerZero Labs, said.
The strategic importance of this move cannot be overstated for PayPal’s competitive stance. While its $1.9 billion market cap is dwarfed by incumbents, this integration provides a scalable on-ramp to the vast, established user bases on chains like Tron. It is a direct offering to developers on Aptos, Sei, and Avalanche, providing them with a major, compliant stablecoin option that carries the trust of a legacy fintech name
This development also serves as the first major validation of LayerZero’s acquisition of the Stargate bridge protocol. The integration leverages Stargate’s pioneering “Hydra model,” a framework designed to extend assets from a central hub onto a multitude of spoke chains.
