LayerZero Enables PayPal USD Stablecoin Transfers Between Ethereum and Solana

The PayPal USD (PYUSD) stablecoin now uses LayerZero’s Omnichain Fungible Token (OFT) Standard to enable transfers between the blockchain networks Ethereum and Solana.

This integration enables fast, secure and cost-effective transactions for both users and businesses, the companies said in a Tuesday (Nov. 12) press release.

“We believe that PYUSD holders will welcome the flexibility and convenience offered by LayerZero,” Jose Fernandez da Ponte, senior vice president of blockchain, cryptocurrency and digital currencies at PayPal, said in the release.

With this integration, PYUSD users who self-custody their tokens will be able to transfer assets between blockchains without having to use centralized platforms like Venmo or PayPal, according to the release.

To ensure protection for transfers of all sizes, the security stack includes Paxos, Google Cloud and LayerZero Labs decentralized verifier networks (DVNs) as verifiers, the release said.

Paxos, which issues PYUSD, retains the flexibility to add or replace verifiers as needed, per the release.

“The OFT Standard unlocks a new level of interoperability for stablecoins,” LayerZero Labs CEO Bryan Pellegrino said in the release. “By using LayerZero, PYUSD can move seamlessly between Ethereum and Solana — helping holders move their tokens between chains to use them how they want and when they need to.”

PayPal introduced PYUSD in August 2023, saying the U.S. dollar-pegged stablecoin lets users fund purchases with PYUSD by choosing it at checkout, and convert any of the cryptocurrencies supported by PayPal to and from PYUSD.

The company said PYUSD is “designed to contribute to the opportunity stablecoins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries and similar cash equivalents.”

The stablecoin made its debut on PayPal-owned Venmo in September 2023, with the company saying this would provide a stable form of digital value that connects fiat dollars to the Web3 ecosystem.

PayPal added PYUSD to Solana in May, saying it aimed to make the stablecoin faster and cheaper to use and give users the choice of multiple blockchains for more flexibility and control. The company added that Solana provides benefits for commercial use cases, as the blockchain “is known for processing massive amounts of transactions at high speeds with extremely low costs.”