Author: Tom Mitchelhill, CoinTelegraph; Translated by: Deng Tong, Golden Finance
PayPal’s dollar-pegged stablecoin PayPal USD has integrated with cross-blockchain bridge protocol LayerZero to enable transfers between Ethereum and Solana.
LayerZero said in a Nov. 12 statement that PYUSD now uses its Omnichain fungible token (OFT) standard to enable cross-chain transfers, which will “enable users who self-custody their tokens to seamlessly transfer assets between blockchains — without relying on centralized platforms like Venmo or PayPal.”
Source: LayerZero
PYUSD’s market capitalization and its distribution across the two blockchain networks have changed significantly in recent months.
On August 26, PYUSD hit a record market cap of $1 billion, with more than $660 million circulating on the Solana network and only $340 million on Ethereum.
According to DefiLlama, as of press time, the total market value of PYUSD has nearly halved to $513 million, with only $166 million in circulation on Solana and $384 million deployed on Ethereum.
PYUSD circulation on Ethereum surges. Source: DefiLlama
PayPal has been taking steps to expand the accessibility of PYUSD, including partnering with Anchorage Digital to launch a rewards program for customers who hold PayPal USD stablecoins at cryptocurrency custodians.
In May, PayPal launched PYUSD on Solana, partnering with Crypto.com, Phantom, and Paxos to introduce users to the blockchain network.
It also partnered with crypto infrastructure provider MoonPay to allow users to buy cryptocurrencies using their PayPal accounts. In July, the partnership expanded to bring users to crypto betting platform Polymarket.
Coinbase, which also has an institutional custody arm, encourages users to hold stablecoins on its platform. It currently offers an annual yield of about 5.2% for USD Coin. Coinbase owns a stake in stablecoin issuer Circle.
Despite PYUSD’s recent success, it still lags far behind fellow dollar-pegged stablecoins Tether and USDC, which have market caps of nearly $118 billion and $35 billion, respectively, according to CoinMarketCap.
