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PayPal’s PYUSD stablecoin integrates LayerZero, enabling cross-chain transfers across multiple blockchains and supporting broader access to decentralized finance (DeFi).

PayPal has expanded the capabilities of its stablecoin, PayPal USD (PYUSD), by integrating with the LayerZero protocol, enabling cross-chain transfers. 

According to a recent announcement, the integration allows PYUSD to move across multiple blockchain networks beyond its initial Ethereum-only framework, addressing the growing demand for interoperable digital assets within the decentralized finance (DeFi) space.

PYUSD, launched in August 2023, initially operated solely on the Ethereum blockchain, limiting its utility to that network. 

LayerZero’s interoperability solution now provides a bridge for PYUSD to reach other Ethereum Virtual Machine (EVM)-compatible chains, enhancing its functionality in a broader blockchain environment. This integration allows users to transfer PYUSD across different chains without relying on centralized exchanges or manual transfer processes, potentially reducing transaction fees and increasing accessibility.

LayerZero’s protocol operates by creating a bridge that securely links separate blockchain networks, supporting asset transfers without the need for extensive conversion steps. 

For PYUSD users, this means that the stablecoin can now interact with a wider range of decentralized applications (dApps) and services across supported networks.

Bryan Pellegrino, CEO of LayerZero Labs, said, “By using LayerZero, PYUSD can move seamlessly between Ethereum and Solana — helping holders move their tokens between chains to use how they want and when they need to.”

According to the announcement, the integration marks PayPal's effort to adapt PYUSD to the requirements of a more interconnected blockchain ecosystem, potentially allowing users to engage with DeFi protocols, liquidity pools, and other financial platforms that operate on various chains.