Originally published on: November 13, 2024
PayPal’s US dollar-pegged stablecoin, USDPYUSD$0.9996, has joined forces with LayerZero, a cross-blockchain bridging protocol, to facilitate smooth transfers between Ethereum and Solana networks.
LayerZero announced on Nov. 12 that USDPYUSD now utilizes its Omnichain Fungible Token (OFT) Standard, allowing users to transfer assets across blockchains without relying on centralized platforms like Venmo or PayPal.
According to LayerZero, this integration will benefit users who self-custody their tokens, providing them with a hassle-free way to move assets between Ethereum and Solana.
Over the past few months, the market capitalization and distribution of PYUSD across the two networks have seen significant changes. While USDPYUSD hit a record market cap of $1 billion on Aug. 26, with $660 million circulating on Solana and $340 million on Ethereum, its total market cap has since dropped to $513 million, with $166 million on Solana and $384 million on Ethereum.
To enhance accessibility, PayPal has been collaborating with various partners. Earlier this year, they teamed up with Anchorage Digital to launch a rewards program for clients holding PayPal USD stablecoins with the crypto custodian. In May, PayPal introduced PYUSD on Solana in partnership with Crypto.com, Phantom, and Paxos.
Additionally, PayPal worked with MoonPay to allow users to purchase cryptocurrency using PayPal accounts and partnered with Polymarket for on-ramping users to the crypto betting platform. Despite these efforts, PYUSD still trails behind other dollar-pegged stablecoins like Tether and USDC in terms of market capitalization.
While PYUSD continues to make strides, there is room for growth and expansion in the stablecoin market. Stay updated on the latest developments in decentralized finance by subscribing to the Finance Redefined newsletter. Each week, receive insights, analysis, and financial opportunities to make informed decisions confidently. Join our community and explore the world of DeFi today!
