PayPal USD Stablecoin Integrates LayerZero for Ethereum-Solana Transfers
On Tuesday, PayPal announced that its USD stablecoin #PYUSD now utilizes LayerZero for transfers between the Ethereum and Solana blockchains. The integration aims to reduce liquidity fragmentation and enhance transaction speed, security, and cost-effectiveness for users and businesses.
The market cap of PYUSD on Ethereum remains around $350 million, while its supply on Solana has decreased significantly from over $660 million in August to $186 million. Jose Fernandez da Ponte, PayPal's senior vice president of blockchain and cryptocurrency, stated that “PYUSD holders will welcome the flexibility and convenience offered by LayerZero.”
The PayPal USD stablecoin will use LayerZero’s Omnichain Fungible Token (OFT) for efficient transfers. Bryan Pellegrino, CEO of LayerZero Labs, highlighted that the OFT standard enhances interoperability for stablecoins, allowing seamless movement of PYUSD between Ethereum and Solana.
Stablecoin Supply Expands after US Election
Following the US election results and Donald Trump's victory, the circulating supply of Tether's USDT #USDT and Circle's USDC #USDC surged by $5.4 billion. TradingView reports that USDT circulation increased by $3.8 billion to a record $124 billion, while USDC's supply grew by $1.6 billion, nearing $37 billion.
Huge amounts of funds are being pumped into the crypto market!
In the past 24 hours, ~1.25B $USDT flowed from the #TetherTreasury to exchanges! pic.twitter.com/R7Roi87lca
— Lookonchain (@lookonchain) November 13, 2024
This increase in stablecoin supply typically indicates higher purchasing power in the crypto market. Stablecoins, pegged to the US dollar, provide vital liquidity for trading, serving as "dry powder" for asset purchases. Tether's USDT is the most liquid stablecoin globally, while Circle's USDC is favored in the US market and among platforms like Coinbase. The recent growth aligns with heightened market activity following Trump's electoral success, making PayPal's stablecoin move timely.
According to DefiLlama, the native USDC supply on the Solana #SOL network rose by 14% over the past week, reaching nearly $2.9 billion, driven by increased transaction volumes across Solana-based DeFi protocols. Additionally, USDT supply on the TON blockchain reached $1.1 billion, reflecting a 10% rise as users engaged with the Telegram-centered ecosystem.