PayPal has expanded its PYUSD stablecoin to Tron, Avalanche, and additional chains using LayerZero’s interoperability protocol, announced on September 18, 2025.
This expansion enhances PYUSD utility across decentralized finance ecosystems, potentially increasing transaction volumes and impacting assets like ETH, TRX, and AVAX.
PayPal broadens PYUSD stablecoin reach to Tron, Avalanche, enhancing DeFi uses.
This move potentially increases the liquidity and utility of PYUSD. It is expected to affect transaction volumes on integrated platforms and might provoke shifts in market dynamics due to enhanced DeFi opportunities.
PayPal Integrates PYUSD with Nine Blockchains
PayPal expands PYUSD to nine different blockchains, enhancing its cross-chain functionalities. The platform is using LayerZero’s interoperability protocol to facilitate this transition, expanding its native deployments across several networks including Ethereum and Solana.
PYUSD0 extends PayPal USD from its native deployments on Arbitrum, Ethereum, Solana and Stellar, bringing the stablecoin to Abstract, Aptos, Avalanche, Berachain, Flow, Ink, Sei, Stable, and Tron.” – LayerZero Official Blog
The main entities involved are PayPal and LayerZero, with Dan Schulman leading PayPal. The expansion involves integration on various platforms and introduces a permissionless variant “PYUSD0”. This change aims to enhance PYUSD’s utility across decentralized ecosystems.
PYUSD Expansion Boosts Liquidity and DeFi Use
This move potentially increases the liquidity and utility of PYUSD. It is expected to affect transaction volumes on integrated platforms and might provoke shifts in market dynamics due to enhanced DeFi opportunities.
Technological and market implications might include increased Total Value Locked and intersecting staking activities across newer chains. The development aligns with trends set by USDT and USDC, pointing to potential shifts towards high-throughput networks.
USDT, USDC Models Predict PYUSD Growth
Past expansions of USDT and USDC to various chains led to significant boosts in liquidity. Their introduction to platforms like Tron and Avalanche resulted in network activity surges, similar to PYUSD’s current extensions.
Kanalcoin experts predict that historical data suggests an increase in adoption for LayerZero-enabled chains. The potential outcome includes elevated network participation and cross-chain capital efficiency. Such trends indicate a positive shift for stakeholders and developers.
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