PayPal's USDC-Pegged Stablecoin PYUSD Integrates With LayerZero to Enable Transfers Between Ethereum and Solana

In a Nov. 12 statement, LayerZero said that PYUSD now uses its Omnichain Fungible Token (OFT) Standard to allow the cross-chain transfers

PayPal’s stablecoin, PayPal USD (PYUSD), has now integrated with LayerZero, a cross-blockchain bridging protocol, to enable transfers between Ethereum and Solana.

According to a statement by LayerZero on Nov. 12, PYUSD is now utilizing its Omnichain Fungible Token (OFT) Standard to facilitate crosschain transfers, which will “enable users who self-custody their tokens to seamlessly transfer assets between blockchains — without needing to rely on centralized platforms like Venmo or PayPal.”

PYUSD’s market capitalization and distribution across the two blockchain networks have shifted notably in recent months.

On Aug. 26, PYUSD attained a record market cap of $1 billion, with over $660 million circulating on the Solana network, while $340 million circulated on Ethereum.

However, at the time of publication, the total market cap of PYUSD has decreased to $513 million, with only $166 million circulating on Solana, while $384 million is deployed on Ethereum, according to data from DefiLlama.

PYUSD circulation has increased on Ethereum. Source: DefiLlama

PayPal has been expanding PYUSD’s accessibility, including collaborating with Anchorage Digital to launch a rewards program for clients who custody PayPal USD stablecoins with the crypto custodian.

In May, PayPal launched PYUSD on Solana, collaborating with Crypto.com, Phantom and Paxos to on-ramp users onto the blockchain network.

It also partnered with crypto infrastructure provider MoonPay to enable users to purchase cryptocurrency using a PayPal account. This partnership was extended to on-ramping users to crypto betting platform Polymarket in July.

Coinbase — which has an institutional custody arm — offers incentives for users to hold stablecoins on its platform. It currently provides an annual percentage yield of about 5.2% on USD Coin (USDC), with Coinbase owning an equity stake in the stablecoin’s issuer, Circle.

Despite its recent achievements, PYUSD still trails behind dollar-pegged stablecoins Tether (USDT) and USDC. According to CoinMarketCap, the two leading stablecoins have market capitalizations of nearly $118 billion and $35 billion, respectively.