In a significant development for the digital finance landscape, PayPal’s USD stablecoin (PYUSD) has recently facilitated cross-chain transfers between Ethereum and Solana via LayerZero. This advancement, reported on November 13 by COINOTAG, aims to mitigate liquidity fragmentation, thus enhancing transaction speed, security, and cost efficiency for both individual users and businesses alike. Notably, the market capitalization of PYUSD on Ethereum has stabilized around $350 million, while the supply on the Solana network has seen a significant decline, dropping from $660 million in August to approximately $186 million as of recent reports.
According to Jose Fernandez da Ponte, Senior Vice President at PayPal, the integration with LayerZero is designed to offer PYUSD holders increased flexibility and convenience. LayerZero Labs’ CEO, Bryan Pellegrino, emphasized that the Omnichain Fungible Token (OFT) standard enhances the interoperability of stablecoins, enabling PYUSD to transition seamlessly across blockchain networks.