PayPal connects USD to LayerZero for transfers between Ethereum and Solana.
PayPal's US Dollar Page stablecoin, PayPal USD (PYUSD), has been integrated with the cross-blockchain bridging protocol LayerZero to enable transfers between Ethereum and Solana.
In a Nov. 12 statement, LayerZero said PYUSD is now using the Omnichain Fungible Token (OFT) standard to allow cross-chain transfers, “allowing users who self-manage their tokens to seamlessly transfer assets between blockchains — without needing to trust centralized platforms like Venmo or PayPal.”
Source: LayerZero
The market capitalization of PYUSD and its distribution on the two blockchain networks have changed significantly in recent months.
In the year On August 26, PUSD hit a record $1 billion market cap, with over $660 million distributed on the Solana network, and $340 million distributed on Ethereum.
As of press time, PYUSD's total market capitalization has nearly halved to $513 million, with only $166 million distributed on Solana and $384 million distributed on Ethereum, according to Defilama data.
PYUSD transfer on Ethereum has increased. Source: Defillama
PayPal has been taking steps to expand PYUSD's reach, including working with Anchorage Digital to launch a rewards program for customers who hold 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 for users using the blockchain network.
It has also partnered with crypto infrastructure provider MoonPay to allow users to purchase their cryptocurrency using a PayPal account. That partnership was extended to crypto betting Polymarket for existing users in July.
Coinbase – which has an institutional escrow arm – encourages users to hold stablecoins on its platform. It currently offers a 5.2% annual percentage yield on USD Coin (USDC). Coinbase has an equity stake in the stablecoin issuing community.
Despite its recent successes, PYUSD still lags dollar-pegged stablecoins Tether (USDT) and USDC. According to data from CoinMarketCap, the two leading cryptocurrencies command a market capitalization of approximately $118 billion and $35 billion, respectively.
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