Popular payment processor, PayPal has integrated with LayerZero, a cross-chain bridging protocol to allow the transfer of its PYUSD ($1.00) stablecoin between Ethereum and Solana networks. According to a statement released on Wednesday, LayerZero confirmed the integration and provided insight into the initiative. 

More so, in the statement, LayerZero disclosed that it has employed its Omnichain Fungible Token (OFT) Standard to facilitate cross-chain movement of assets. As revealed, the innovation allows users to remain the sole custodian of their assets and move their assets seamlessly among two networks. 

Furthermore, the firm added that with the newly introduced innovation, users may no longer rely on centralized platforms to move their assets between two different blockchain networks. Meanwhile, the integration with LayerZero surfaced in a period when the market capitalization and distribution of the PYUSD across Ethereum and Solana has changed in recent times. 

Recall that in August, PYUSD hit a whopping market cap of $1 billion with more than $660 million on Solana, while the Ethereum network only holds $340 million. However, the stablecoin is gradually losing its market share as the market capitalization of PYUSD has declined to just $514.48 million. 

According to DeFiLlama, PYUSD has a circulating supply worth $166 million on Solana and $384 million on Ethereum. This data reflects how the circulating supply of the PYUSD on Solana has regressed in recent months. 

By that, PYUSD is presently the sixth largest stablecoin by market cap and it is way behind high-flying USDT ($1.00) which controls about $125 billion of the entire $185 billion total market cap of the stablecoin sector. 

Side Note on PYUSD 

Recall that in August 2023, PayPal announced the launching of US dollar pegged-PYUSD with the view of contributing to the opportunities presented by stablecoins. While the PYUSD has been struggling to eat into the market share of the stablecoin sector, PayPal has intensified efforts to enhance the accessibility of the token. 

Recently, the company partnered Anchorage Digital to launch a loyalty program for holders of the token. Likewise, in May, PayPal extended support of the PYUSD to the Solana, to facilitate this move, the company partnered with Crypto.com and Phantom to onboard holders to the token to the network. 

Similarly, the stablecoin is enjoying the support of MoonPay that allows users to acquire digital assets using their PayPal account. Additionally, the stablecoin is backed by US dollar deposits, short term treasuries and similar cash equivalents. 

By that, PayPal disclosed that the PYUSD is redeemable at a 1:1 ratio for the US dollar. According to PayPal, the token is issued by Paxos Trust Company.

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