PayPal USD links with LayerZero for transfers between Ethereum and Solana

As a researcher with years of experience in the cryptocurrency market, I find the recent integration between PayPal’s stablecoin, PYUSD, and LayerZero’s cross-blockchain bridging protocol to be an exciting development. The ability for users to seamlessly transfer assets between Ethereum and Solana networks without relying on centralized platforms like Venmo or PayPal itself is a significant step towards decentralization.


Through integration with the multi-chain transfer protocol, LayerZero, PayPal’s US dollar-backed digital coin, PayPal USD (PYUSD), now allows for seamless transactions between the Ethereum and Solana blockchains.

In a November 12 announcement, LayerZero revealed that PyraUSD (PYUSD) has adopted its Multichain Fungible Token (MFT) standard for facilitating cross-chain transfers. This development empowers users who self-custody their tokens to effortlessly move assets between various blockchains, eliminating the need for intermediaries such as Venmo or PayPal.

In the past few months, the market value of PYUSD and how it’s dispersed on the two blockchain platforms has undergone a substantial transformation.

On August 26th, the market capitalization of PYUSD reached an unprecedented $1 billion. Approximately $660 million of this is currently in circulation on the Solana network, compared to only around $340 million on the Ethereum network.

At the point of this report’s release, the overall market capitalization of PYUSD stands at approximately $513 million, with around $166 million in circulation on the Solana platform. Conversely, a significant portion, about $384 million, is currently deployed on Ethereum, according to DefiLlama’s latest data.

As a researcher, I’ve noticed that PayPal is actively working on enhancing the accessibility of PYUSD. One notable effort includes partnering with Anchorage Digital to establish a reward system. This program is designed for clients who choose to hold their PayPal USD stablecoins with Anchorage Digital as their crypto custodian.

In May, PayPal introduced PYUSD on the Solana platform, collaborating with Crypto.com, Phantom, and Paxos to facilitate users in connecting to the blockchain network.

As a researcher, I’ve been involved in a collaboration with MoonPay, a leading crypto infrastructure provider, enabling our users to acquire cryptocurrencies seamlessly using their PayPal accounts. This partnership has further expanded to facilitate the onboarding of users onto the crypto betting platform Polymarket, as recently as July.

As a crypto investor, I’m encouraged to keep my stablecoins, specifically USDC, within the Coinbase platform. This digital money marketplace rewards users like me with a yearly return of around 5.2%. Notably, Coinbase holds an ownership stake in the company that issues USDC, Circle.

Even though PYUSD has recently achieved some notable victories, it is significantly behind dollar-backed cryptocurrencies like Tether (USDT) and USDC in terms of market dominance. As per CoinMarketCap’s latest data, the total value of these two leading stablecoins stands at approximately $118 billion for Tether and around $35 billion for USDC.

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2024-11-13 09:01