LayerZero uses operations validators from companies such as Paxos, Google Cloud and others.
PYUSD reached $1 billion in market capitalization in just over a year.
The payment platform PayPal announced on November 12, 2024 that its stablecoinPayPal USD (PYUSD), has integrated the LayerZero protocol to enable third-party transfers between the Ethereum (ETH) and Solana (SOL) networks.
Now PayPal cryptocurrency holders can transfer this stablecoin between Ethereum and Solana without resorting to intermediaries like Venmo or PayPal.
For users and developers of decentralized applications (dApps), this integration could provide greater flexibility when using the stablecoin from PayPal and be able to choose the chain that best suits your needs, whether Ethereum for its consolidated ecosystem or Solana for its fast and low-cost transactions.
PayPal cryptocurrency improves its interoperability
The incorporation of LayerZero seeks facilitate interoperability cross-chain (interchains) of PYUSD and improve accessibility for users and developers through the Omnichain Fungible Token (OFT) standard, one of the LayerZero tools.
The OFT standard eliminates liquidity fragmentation from a token and allows it to exist in multiple chains, maintaining its unity and functionality.
In the case of the PayPal cryptocurrency, this technology works so that tokens transferred via Ethereum and Solana do not multiply or dividebut that they move in a verifiable way (unlike tokens “wrapped”, like Coinbase’s Bitcoin-based cbBTC for example).
To transfer PYUSD using LayerZero, users can do so from Stargate Financea LayerZero-compatible platform that works as a bridge and facilitates the transfer of assets between different networks, such as Ethereum and Solana.
On this financial platform, users will be able to interact with their wallets self-custody, such as MetaMask, Phantom or TronLink.
It is important to know that Stargate applies a commission of 0.06% to transfers that do not involve your token native, STG.
How do PayPal USD transactions work with LayerZero?
LayerZero uses a network of independent verifiers to authenticate cross-chain transactions. These transaction fact checkers include players such as digital asset solutions company Paxos Trust Company (the issuer of PYUSD), Google Cloud, and LayerZero Labs.
When a user initiates a transfer of the stablecoin PYUSD cross-chain (for example, from Ethereum to Solana), a transfer message is generated containing the transaction information.
This message is sent to the verifiers, who ensure that funds exist and are available on the source chain, that the request is valid and has not been tampered with, and that the transaction data is consistent.
Once the verifiers agree that the transaction is legitimate, they authorize the transfer so that the token be “burned” in the source chain and “minted” in the destination chain.
In short, through this new integration to operate PYUSD between Ethereum and Solana without intermediaries, PayPal aims to encourage the adoption of its stablecoin.
This PayPal cryptocurrency is a token ERC-20 based on Ethereum, created in August 2023 and which exceeded $1 billion in market capitalization, after a little more than a year, an event reported by CriptoNoticias.