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PayPal’s PYUSD stablecoin now supports cross-chain transactions via LayerZero integration

PayPal’s PYUSD stablecoin now supports cross-chain transactions via LayerZero integration

CryptopolitanCryptopolitan2024/11/13 11:22
By:By Nellius Irene

Share link:In this post: PayPal U.S.-dollar-pegged stablecoin can now transfer seamlessly between Ethereum and Solana via LayerZero. Each PYUSD transfer is secured by a decentralized verifier network (DVN) involving Paxos, Google Cloud, and LayerZero Labs. The supply of the stablecoin on Solana has shrunk to $186 million.

PayPal’s stablecoin PYUSD has integrated LayerZero to facilitate smoother transfers between Ethereum and Solana. The intention is to make such transactions more efficient by minimizing liquidity fragmentation, which, according to the corporation, should provide users and businesses with faster, more secure, and more inexpensive options.

LayerZero integration boosts seamless transactions for PYUSD holders

PayPal’s senior vice president, Jose Fernandez da Ponte, highlighted the benefits of integration for PYUSD holders. He emphasized the added seamlessness and flexibility that LayerZero technology provides for such consumers.

According to the statement:

“The integration eliminates liquidity fragmentation and ensures fast, secure, and cost-effective transactions for both users and businesses.”

~ LayerZero

As per DeFiLlama’s data, the market cap of PYUSD on Ethereum has remained relatively stable in recent months, hovering around $350 million. However, its supply on Solana has dropped significantly, from over $660 million in August to just $186 million.

LayerZero’s OFT standard facilitates secure, cross-chain transfers for PYUSD

LayerZero said that PYUSD now uses its Omnichain Fungible Token (OFT) Standard to enable the cross chain transfers. According to LayerZero Labs’ CEO Bryan Pellegrino, the OFT standard unlocks a new level of interoperability for stablecoins.

See also Unknown nation joins top 5 BTC holders, Bitcoin Magazine CEO David Bailey to reveal

To improve security, PayPal’s collaboration with Paxos and LayerZero to ensure that the PYUSD currency transfer process undergoes verification checks during transactions with PayPal’s stablecoin PYUSD. 

The security framework, which initially includes verifiers such as Paxos, Google Cloud, and LayerZero Labs, employs DVNs to secure transactions in a resilient and diversified security layer that protects all sizes of transfers.

The payments company is expanding its business offerings and attracting small and medium-sized businesses under the leadership of CEO Alex Chriss, who took over the company in January. Additionally, the company is working to improve the business and increase its margins, which have declined over the past few years.

PYUSD considerably lags behind dollar-pegged stablecoins Tether (USDT) and USDC. According to data from CoinMarketCap, the two leading stablecoins command market capitalizations of almost $118 billion and $35 billion, respectively.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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