Interoperability protocol LayerZero has announced the integration of PayPal USD (PYUSD) with its Omnichain Fungible Token (OFT) standard, allowing seamless transfers of PYUSD between the Ethereum and Solana blockchains.
With this move, PYUSD users gain increased flexibility and control, bypassing centralized intermediaries like PayPal and Venmo.
Issued by Paxos Trust Company, a regulated financial entity, PayPal USD is fully backed by U.S. dollar reserves. The stablecoin is commonly available through PayPal and Venmo, where it trades at a fixed rate of $1.00 per PYUSD.
LayerZero, an omnichain interoperability protocol, enables developers to build across multiple blockchains, and its OFT standard unifies assets for cross-chain movement.
Bryan Pellegrino, CEO of LayerZero Labs, described the OFT standard as a breakthrough for stablecoins, enabling PYUSD transfers between Ethereum and Solana.
The integration empowers users to access their stablecoins across multiple blockchains with ease, Pellegrino stated, emphasizing the enhanced utility that cross-chain operability brings to stablecoins like PYUSD.
To ensure security, all PYUSD transactions between Ethereum and Solana are backed by a decentralized network of verifiers, known as Decentralized Verifier Networks (DVNs).
The DVN system was chosen by Paxos and PayPal to maintain transaction integrity and includes verifiers such as Google Cloud and LayerZero Labs, offering robust protection across chains.
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Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, expressed optimism about the new functionality, anticipating that users will value the added convenience and adaptability of LayerZero’s protocol.
PYUSD holders will appreciate the flexibility of this integration, da Ponte noted, showcasing the enhanced experience it brings to users.
For users wishing to move PYUSD between Ethereum and Solana, LayerZero recommends using the Stargate Finance bridge, an established gateway for secure cross-chain transactions.
This advancement is step forward in enhancing blockchain interoperability, enabling PYUSD to circulate more freely in the decentralized financial ecosystem.
