PYUSD integrates LayerZero to connect across chains

PayPal USD integrates LayerZero for transfers between Ethereum and Solana

2024-11-13 by Ndaman Olayinka 3 minutes read
PayPal USD integrates LayerZero for transfers between Ethereum and Solana

PayPal USD (PYUSD) now uses LayerZero's Omnichain Fungible Token (OFT) Standard to facilitate transfers between Ethereum and Solana, according to a statement released on Tuesday, November 12 by LayerZero, the industry-leading interoperability protocol.

For both users and businesses, the integration guarantees quick, secure, and cost-efficient transactions while removing liquidity fragmentation.

PYUSD integrates LayerZero to connect across chains

PYUSD will now make it possible for users who self-custody their tokens to move assets between blockchains with ease by leveraging LayerZero, eliminating the need for centralized platforms such as PayPal or Venmo.

According to LayerZero Labs CEO Bryan Pellegrino, "the OFT standard unlocks a new level of interoperability for stablecoins."

LayerZero enables PYUSD to move between Ethereum and Solana with ease, allowing token holders to move their holdings between chains as needed and as desired, Pellegrino explained.

With more than $660 million moving on the Solana network and $340 million moving on Ethereum, PYUSD set a new market cap of $1 billion on August 26. According to DefiLlama data, the total market capitalization of PYUSD has almost halved to $513.86 million as of the time of writing, with only $166.87 million in circulation on Solana and $348 million on Ethereum.

Security and flexibility built-in features

The carefully chosen collection of Decentralized Verifier Networks (DVNs) from Paxos and PayPal USD secures every PYUSD transfer, the post added.

Paxos, Google Cloud, and LayerZero Labs DVNs are included as verifiers in the security stack at launch, guaranteeing robust, diverse, and enterprise-grade protection for transactions of all sizes. Paxos maintains the flexibility to add or replace verifiers, guaranteeing continuous security and removing the risk of vendor lock-in.

Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated, "We believe that PYUSD holders will welcome the flexibility and convenience offered by LayerZero."

By using the LayerZero OFT Standard, PYUSD holders will have more options when it comes to choosing a blockchain. PYUSD will continue to advance digital commerce, offering quicker and easier payments that represent the future of blockchain-based commerce, whether on Ethereum or Solana, the post added.

PayPal uses its stablecoin for its first business transaction

PayPal paid an Ernst & Young LLP invoice on September 23 using PYUSD, the stablecoin the company launched the previous year. The SAP SE platform was used to make the payment. However, the public was not informed of the invoice's total amount.

The purpose of this transaction was to demonstrate how digital currencies, like PayPal's stablecoin that is pegged to the US dollar, can be used to enhance often difficult business transactions.

Disclaimer

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