In August 2023 fig PayPal continued its expansion in the field of cryptocurrencies in launching its own stablecoin PYUSD. It has since become the seventh largest stablecoin, with $500 million in market capitalization. from now on PayPal continues to integrate its PYUSD with other protocols such as LayerZero.
- PayPal has expanded its influence in the cryptocurrency world with the launch of its PYUSD stablecoin, which is now integrated with LayerZero for cross-chain transfers.
- PYUSD has seen a dynamic transition between the Solana and Ethereum blockchains, with its presence on Solana dropping recently.
PayPal integrates its PYUSD with LayerZero
Originally launched on Ethereum PYUSD was deployed last May on the Solana network. So, after allowing the purchase and subsequent sale of cryptocurrencies, PayPal decided to launch its own token.
The stablecoin was quickly met with significant enthusiasm and Solana quickly became the main PUYSD blockchain.
In August, at the top, Solana recorded PYUSD 663 millionor twice as much as on Ethereum at the same time. A number that has since dropped dramatically to PYUSD 166 million at the time of writing.
Thus, Ethereum once again became the main blockchain of PYUSD with 340 million PYUSD in circulation.
However, PayPal is not going to leave Solana. On November 13, therefore LayerZero teams announced PYUSD integration.
“LayerZero, the leading interoperability protocol, announced today that PayPal USD (PYUSD) now uses LayerZero’s Omnichain Fungible Token (OFT) standard to enable transfers between Ethereum and Solana. »
As explained in the announcement, PYUSD will now use the standard Omnichain Fungible Token (OFT) by LayerZero. This makes it possible facilitate transfers between Ethereum and Solanatwo chains on which PYUSD is seeded.
In practice, OFTs allow a token to be transferred between blockchains without the need to create a “wrapped” token. As a result, tokens are developed natively on each of the two blockchains.
A step towards decentralization for PayPal
This integration with LayerZero is not trivial. In fact, PayPal allows it decentralize certain aspects of your stablecoin.
So until now, transfers between chains required the use of a central actor such as PayPal or Venmo. Now, thanks to the integration with LayerZero, users can transfer their PYUSD between the two chains in a decentralized manner.
“With LayerZero, PYUSD will now allow users who own their tokens to seamlessly transfer assets between blockchains without relying on centralized platforms like Venmo or PayPal. »
At the same time, PayPal is exploring more institutional applications for its stablecoin. So at the beginning of October, PYUSD was first used to settle a business transaction. The aim of the maneuver was to demonstrate the benefits of cryptocurrencies in the context of certain transactions.