Stablecoin issued by PayPal, PYUSD, achieves a market capitalization of over $1.3 billion as it extends its reach to Tron and Avalanche networks.
PayPal Links, the payment service offered by the digital payments giant, is set to roll out in the United States first, with plans to expand to overseas markets in the coming months. This announcement comes after an exciting development in the world of cryptocurrency, as PayPal announced earlier this week that users would be able to make peer-to-peer payments in Bitcoin, Ethereum, and PYUSD using a new tool called PayPal Links.
PayPal's foray into the realm of stablecoins is not a new venture. The company's PYUSD stablecoin, introduced two years ago, has been gaining traction in the market. In fact, a recent survey conducted by EY-Parthenon found that 36% of corporations use PayPal's PYUSD stablecoin, making it more popular than Ethena's USDe and Sky Protocol's USDS.
The market capitalization of PayPal's PYUSD stablecoin was $1.3 billion on Thursday, a significant figure in the rapidly growing stablecoin sector, which recently surpassed $270 million, according to David Weber, head of ecosystem for PayPal USD. This growth is a testament to the increasing acceptance and usage of stablecoins in the financial industry.
PayPal's stablecoin product is powered by LayerZero's Omnichain Fungible Token (OFT) Standard, an infrastructure shared by Tether's USDT0 token and the Frontier Stable Token, introduced by the state of Wyoming. This shared infrastructure allows for seamless integration and interoperability between different blockchains.
In a recent announcement, LayerZero extended PayPal's PYUSD stablecoin to nine additional blockchains. These include Tron, Avalanche, Aptos, Ink, Sei, Stable, and others. This expansion was enabled through Stargate, a bridge connecting over 80 blockchains, which was recently acquired by LayerZero. When bridged to various networks through Stargate, PayPal's stablecoin is represented through PYUSD0 tokens, similar to wrapped Bitcoin tokens like WBTC and cbBTC.
David Weber also stated that innovations like this are essential for creating the seamless, interoperable financial infrastructure that users and developers demand. He emphasised that this expansion is a significant step towards realizing that vision.
As PayPal continues to expand its stablecoin offerings and integrate with various blockchains, it will be interesting to see how the market reacts and how this innovation shapes the future of digital payments and the cryptocurrency industry.
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