PayPal USD links with LayerZero for transfers between Ethereum and Solana

PayPal’s United States dollar-pegged stablecoin, PayPal USD (PYUSD) has integrated with the cross-blockchain bridging protocol 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 enable the 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 its distribution across the two blockchain networks have changed significantly in recent months. 

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

As of the time of publication, the total market cap of PYUSD has nearly halved to $513 million, with just $166 million circulating on Solana, while $384 million is deployed on Ethereum, per DefiLlama data. 

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

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

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

Coinbase — which also has an institutional custody arm — incentivizes users to hold stablecoins on its platform. It currently offers approximately 5.2% annual percentage yield on USD Coin (USDC). Coinbase owns an equity stake in the stablecoin’s issuer Circle. 

Despite its recent successes, PYUSD still greatly lags behind dollar-pegged stablecoins Tether (USDT) and USDC. According to data from CoinMarketCap, the two leading stablecoins command market capitalizations of nearly $118 billion and $35 billion, respectively. 

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