- PayPal has integrated its stablecoin, PYUSD, with LayerZero, enabling seamless transfers between Ethereum and Solana.
- This substantial integration positions PayPal USD favorably to acquire new users and distinguish itself from rival stablecoins.
Paypal has integrated its U.S. dollar-pegged stablecoin, PayPal USD, with the Layerzero cross-blockchain bridging protocol. This integration will ensure seamless integration of PYUSD between Ethereum and Solana.
LayerZero, an interoperability protocol that connects over 50 blockchains, announced this development in a statement stating that PYUSD now uses Omnichain Fungible Token Standard.
🔵 PayPal USD (PYUSD) integrates LayerZero to connect across chains, enabling seamless transfers between Ethereum and Solana.
By utilizing LayerZero, users who self-custody their PYUSD tokens can seamlessly transfer assets between blockchains — without needing to rely on… pic.twitter.com/4MxgW8bzYV
— LayerZero (@LayerZero_Core) November 13, 2024
The aforementioned standard will allow users to move assets across blockchains without relying on centralized platforms such as Venmo or even PayPal itself.
Additionally, this integration with LayerZero comes as PYUSD’s distribution on both Ethereum and Solana continues to unfold. In August, PYUSD achieved a peak market cap of $1 billion, with over $660 million circulating on Solana and $340 million on Ethereum. However, recent data from DefiLlama has revealed a sharp decrease in market cap to around $513 million, with a significant shift in PYUSD circulation.
Currently, $166 million of PYUSD resides on Solana, while Ethereum has seen an uptick, holding $384 million in PYUSD assets.
On the other hand, Paypal has been proactive in expanding PYUSD reach and usability via partnerships and intergrations. Earlier this year, the company launched PYUSD on Solana, collaborating with major crypto players such as Crypto.com, Phantom, and Paxos.
The partnership aimed to onboard users to the Solana blockchain while introducing PYUSD to new markets. Additionally, PayPal’s partnership with Anchorage Digital introduced a rewards program, incentivizing clients who custody PYUSD with the crypto custodian.
Additionally, in collaboration with MoonPay, PayPal enables users to purchase cryptocurrencies via PayPal accounts, creating a bridge between traditional and digital finance. This partnership also allowed for PYUSD purchases on platforms like Polymarket, extending its utility across decentralized platforms.
Despite these advancements, PYUSD still trails behind market leaders Tether (USDT) and USD Coin (USDC), which command market caps of approximately $118 billion and $35 billion, respectively. Despite holding a starter position in the stablecoin market, through this significant integration, the U.S. dollar-pegged stablecoin is positioned to attract new users and stand uniquely from competitors.
PayPal’s PYUSD is taking a giant leap with LayerZero’s integration, becoming a multi-chain asset that can seamlessly traverse Ethereum and Solana. This move could be a game-changer, propelling PayPal into a major player in the crypto and DeFi world.
Solana and Ethereum Price Analysis
At the time of writing, the second largest cryptocurrency by market cap is swapping hands with $3,158.67 marking a 5.66% decline in the past 24 hours. However, ETH’s current price is still 20.60% up in the past week.
Moving on to Solana’s native token SOL, the digital asset is swapping wallets with $206.69 marking a 4.79% decline in the past 24 hours. Conversely, the asset is still afloat in the weekly charts representing a 12.20% surge in the past seven days.
