PayPal USD Expands to TRON Network Through LayerZero

PayPal USD (PYUSD) is now available on the TRON blockchain through LayerZero’s Stargate Hydra system, according to a press release shared with BSCN. The token, introduced as PYUSD0 on TRON, mirrors the original PayPal USD stablecoin issued by Paxos Trust Company. It remains fully fungible and interoperable with PYUSD across supported blockchains, redeemable 1:1 for U.S. dollars.

This move brings PayPal’s stablecoin to TRON’s wide user base of more than 332 million accounts and strengthens its position in the growing stablecoin sector.

Background: What is PayPal USD?

PayPal USD, also known as PYUSD, was first launched in 2023 on Ethereum. The stablecoin is backed by U.S. dollar deposits and short-term treasuries and is issued by Paxos Trust Company. Since its launch, PYUSD has expanded to Solana, Arbitrum, and Stellar.

• Current market cap: $1.34 billion (CoinMarketCap, September 2025)
• Circulating supply: 1.9 billion tokens (The Block)
• Comparison: USDT stands at $171 billion; USDC at $74 billion

PYUSD is still relatively small compared to competitors like Tether and Circle, but adoption has been growing steadily.

TRON’s Role in the Integration

TRON DAO confirmed that PYUSD will be issued on TRON as PYUSD0 via Stargate Hydra. Stargate uses LayerZero’s Omnichain Fungible Token (OFT) Standard to create permissionless versions of assets that work seamlessly across blockchains.

Key TRON metrics highlight the scale of this expansion:

• 332 million user accounts registered on-chain
• $28 billion total value locked across the ecosystem
• $21 trillion cumulative transfer volume since mainnet launch in 2018
• Around 9 million daily transactions and 2.83 million active accounts daily
• Nearly $1 billion protocol revenue generated in each of the first two quarters of 2025

With TRON already hosting high-volume transactions and significant DeFi activity, the addition of PYUSD0 broadens stablecoin access across its network.

How PYUSD0 Works

PYUSD0 is the permissionless version of PayPal USD. It is not a separate stablecoin but an extension of PYUSD. The tokens remain unified: whether users hold PYUSD on Ethereum or PYUSD0 on TRON, they represent the same asset.

• Fungibility: PYUSD and PYUSD0 are interchangeable.
• Interoperability: Transfers across networks use LayerZero’s cross-chain system.
• No extra action: Users do not need to swap or migrate; the token works seamlessly across supported chains.

This mirrors the way wrapped Bitcoin (WBTC) represents BTC outside of its native chain.

With the recent expansion, PYUSD0 will be launched on six additional chains — Abstract, Aptos, Avalanche, Ink, Sei, and Stable, other than TRON. Existing bridged versions on Berachain (BYUSD) and Flow (USDF) will also transition to PYUSD0.

The LayerZero Connection

LayerZero has been a critical player in building cross-chain infrastructure. Last year, it enabled PYUSD transfers between Ethereum and Solana by applying its OFT standard. This eliminated liquidity fragmentation and allowed self-custodial users to move PYUSD without relying on centralized platforms.

Through its Stargate Hydra model, assets can extend from a hub blockchain to multiple spokes. This system now powers PYUSD0 on TRON, Avalanche, Sei, and other networks.

Other stablecoins, including Tether’s USDT0 and Wyoming’s Frontier Stable Token, already use the same technology.

Why This Expansion Matters

Stablecoins serve as key tools in crypto markets, powering payments, trading, and remittances. For PayPal, bringing PYUSD to TRON increases reach in regions where TRON already plays a strong role in cross-border transactions.

Justin Sun, founder of TRON, said stablecoins are one of the clearest examples of real-world adoption in crypto. 

“The launch of PYUSD0 on TRON gives both users and institutions greater accessibility, and reflects our ongoing commitment to supporting assets that bring trust, efficiency, and broader access to the digital economy,” Sun stated.

Bryan Pellegrino, CEO of LayerZero Labs, highlighted the role of stablecoins as a “killer app” in crypto, calling the launch an important step in building a global financial system that works across networks.

PayPal itself recently launched PayPal Links, a peer-to-peer payment tool allowing transfers in Bitcoin, Ethereum, and PYUSD. This product, beginning in the U.S., adds another utility layer to its stablecoin.

The Broader Stablecoin Market

The stablecoin sector has grown to over $270 billion in circulation, according to industry data. While PYUSD is still small compared to giants like USDT and USDC, its expansion shows how traditional payment companies are embedding themselves deeper into the crypto economy.

PYUSD’s growth strategy relies on interoperability and network reach rather than sheer size. By leveraging LayerZero’s cross-chain system, PayPal places its stablecoin alongside the most widely integrated tokens.

Conclusion

The expansion of PayPal USD to TRON through LayerZero’s Stargate Hydra adds another layer of interoperability and accessibility to the stablecoin. With PYUSD0, users gain a fully fungible token that works across multiple blockchains while maintaining the same 1:1 backing with U.S. dollars.

TRON’s scale, LayerZero’s cross-chain technology, and PayPal’s established role in digital payments combine to make this integration a practical step in stablecoin distribution. The result is broader network reach, more transaction flexibility, and improved liquidity for PayPal USD across the crypto ecosystem.

Resources:

1. PayPal USD expands to TRON Network via LayerZero - Press release: https://cointelegraph.com/press-releases/paypal-usd-expands-to-tron-network-via-layerzero

2. PayPal's PYUSD stablecoin expands to Tron, Avalanche, Sei and other blockchains via LayerZero - report by The Block: https://www.theblock.co/post/371321/paypal-pyusd-stablecoin-expands-blockchains-layerzero?utm_source=twitter&utm_medium=social

3. Press release - PayPal Ushers in a New Era of Peer-to-Peer Payments, Reimagining How Money Moves to Anyone, Anywhere : https://newsroom.paypal-corp.com/2025-09-15-PayPal-Ushers-in-a-New-Era-of-Peer-to-Peer-Payments,-Reimagining-How-Money-Moves-to-Anyone,-Anywhere