PayPal USD (PYUSD), PayPal’s US dollar-pegged stablecoin, integrates with LayerZero, an inter-blockchain bridging protocol, to enable transfers between Ethereum and Solana.
In a statement on November 12, LayerZero said that PYUSD now allows cross-chain transfers using the Omnichain Fungible Token (OFT) standard. This “enables the seamless transfer of assets between blockchains without relying on users to manage their own tokens.” “It’s a centralized platform like Venmo or PayPal.”
source: layer zero
PYUSD’s market capitalization and distribution across both blockchain networks have changed significantly in recent months.
On August 26, PYUSD reached a record market cap of $1 billion, with over $660 million in circulation on the Solana network and $340 million on Ethereum.
As of publication, PYUSD’s total market cap is nearly half that, at $513 million, with only $166 million in Solana and $384 million in Ethereum, according to DefiLlama data.
PYUSD circulation on Ethereum has surged. Source: DefiLlama
PayPal has been taking steps to expand the accessibility of PYUSD, including working with Anchorage Digital to launch a rewards program for customers who store their PayPal USD stablecoin with the cryptocurrency custodian.
relevant: Detroit residents will be able to pay taxes with cryptocurrency starting in mid-2025.
Last May, PayPal partnered with Crypto.com, Phantom, and Paxos to launch PYUSD on Solana, bringing users onto the blockchain network.
It has also partnered with cryptocurrency infrastructure provider MoonPay to allow users to purchase cryptocurrency using their PayPal accounts. This partnership expanded to expand users to cryptocurrency betting platform Polymarket in July.
Coinbase, which has institutional custody, encourages users to hold stablecoins on its platform. It currently offers an annualized yield of approximately 5.2% for USD Coin (USDC). Coinbase owns a stake in stablecoin issuer Circle.
Despite recent success, PYUSD still lags behind dollar-pegged stablecoins Tether (USDT) and USDC. According to data from CoinMarketCap, the two major stablecoins have market capitalizations of approximately $118 billion and $35 billion, respectively.
magazine: AI agents trading cryptocurrencies are hot news, but beware of rookie mistakes