Paypal expands its stablecoin to Avalanche

PayPal has taken its stablecoin a step further with the launch of PYUSD0, an evolution of PayPal USD designed to operate in an omnichain environment. Since September 2025, this asset has been available on Avalanche, powered by LayerZero and Stargate Hydra infrastructure, and backed by regulated issuer Paxos. The initiative aims to streamline payments, remittances, and digital transactions on a global scale.

From PayPal USD to PYUSD0: The Evolution

When PayPal introduced PYUSD, its goal was to provide a reliable digital dollar backed 1:1 by U.S. dollar reserves.
The innovation behind PYUSD0 is that it is no longer confined to a single blockchain: it moves natively across multiple networks, maintaining fungibility without relying on wrapped or duplicated versions.

This means that a single PYUSD0 can circulate seamlessly across different ecosystems, a critical feature for the mass adoption of digital payments.

The Infrastructure Behind It

To enable this interoperability, the deployment of PYUSD0 relies on two key components:

• LayerZero: a protocol that connects blockchains and allows a token to move between them without traditional bridges.
• Stargate Hydra: the technology ensuring that PYUSD0 remains the same asset across all networks, sharing liquidity in full.

With this foundation, integration on Avalanche becomes strategically significant. The blockchain is known for its sub-second finality, low fees, and high transaction scalability, making it an ideal network for everyday payments and international transfers.

What Changes with PYUSD0 on Avalanche?

The arrival of PYUSD0 on Avalanche is not just about added liquidity. It represents the possibility of digital money working closer to physical cash in terms of speed and certainty.

Speed: transactions confirmed in less than a second.
Security: deterministic settlement, with no reversals or ambiguity.
Accessibility: low fees, making it viable for small remittances or everyday purchases.

In practice, this opens the door to use cases such as:

• Faster and cheaper cross-border remittances.
• Direct merchant payments.
• Transfers between applications without reliance on banks.

A Multichain Expansion

The integration with Avalanche is part of a broader strategy. In September 2025, PayPal announced that PYUSD0 would expand to nine additional blockchains, including Avalanche and Tron.

The issuer remains Paxos, a U.S.-regulated entity, ensuring that PYUSD0 maintains its backing and complies with regulatory standards.

Challenges and Considerations

Although the infrastructure is ready, mass adoption still depends on several factors:

• Regulatory frameworks: varying conditions across different countries.
• Technological security: interoperability protocols introduce new vectors of risk.
• Commercial and user adoption: depends on wallet usability and merchants’ willingness to accept it.

For the first time, a digital dollar from a recognized brand like PayPal integrates into a network designed for high-speed, low-cost payments, with an omnichain model that allows the same asset to move across multiple blockchains.

While regulatory and technical challenges remain, the combination of PayPal’s digital payments expertise, Paxos’ regulated backing, and Avalanche’s infrastructure positions PYUSD0 as a key element in advancing toward a more connected and efficient global financial system.