PayPal Integrates Its Stablecoin With LayerZero For Seamless Cross-Chain Transfers Between Ethereum And Solana
In Brief
LayerZero announced that PYUSD now uses its OFT Standard to facilitate transfers between Ethereum and Solana, reducing liquidity fragmentation and promoting faster, secure, and cost-effective transactions for users and businesses.
Interoperability protocol LayerZero announced that PayPal USD (PYUSD) stablecoin now uses its Omnichain Fungible Token (OFT) Standard to facilitate transfers between the Ethereum and Solana blockchains. This integration is designed to prevent liquidity fragmentation, promoting faster, more secure, and cost-effective transactions for both individual users and businesses.
Issued by Paxos Trust Company, PYUSD is backed by US dollar reserves, US Treasuries, and other cash-equivalent assets, holding a stable one-to-one value with the US dollar to maintain price stability. Users can buy, sell, hold, and transfer PYUSD directly through PayPal’s platform.
Through LayerZero’s technology, PYUSD will now allow users who self-custody their tokens to move assets between blockchains seamlessly, removing the need to rely on centralized platforms such as Venmo or PayPal.
Every PYUSD transfer is supported by a selected group of Decentralized Verifier Networks (DVNs) chosen by PayPal, USD, and Paxos. Initially, this security structure includes DVNs from Paxos, Google Cloud, and LayerZero Labs, providing enterprise-level resilience and security for transactions of any size. Paxos has the option to modify the list of verifiers as needed, ensuring continuous security and avoiding the risk of dependence on any single provider.
The use of LayerZero’s OFT Standard enables PYUSD holders to select their preferred blockchain, whether Ethereum or Solana. PYUSD aims to support the evolution of digital commerce by enabling faster, more accessible blockchain-based payments that align with the future of digital transactions.
LayerZero Labs And Offchain Labs Develop Solution To Enable OFT Compatibility With Arbitrum Orbit Chains
The LayerZero protocol enables seamless communication and interoperability across over 80 different networks. This technology allows applications to transfer data between blockchains, providing unique support for messages that are resistant to censorship and facilitating permissionless development through permanent smart contracts.
Recently, LayerZero Labs collaborated with Offchain Labs to create a solution that enables OFTs to be fully compatible with Arbitrum Orbit chains. One of the primary features of this integration is that OFTs can now serve as native gas tokens on Arbitrum Orbit blockchains that choose to adopt this solution.
Disclaimer
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
