KEY TAKEAWAYS
- LayerZero integrates PayPal USD with its Omnichain Fungible Token Standard, enhancing interoperability between Ethereum and Solana.
- The integration allows users to transfer PYUSD across blockchains without relying on centralized platforms, offering greater flexibility and security.
- PayPal USD’s security is bolstered by Decentralized Verifier Networks, including Paxos and Google Cloud, ensuring robust transaction protection.
- This development is set to advance digital commerce by enabling faster, more accessible blockchain-based payments.
LayerZero, a prominent interoperability protocol, has announced that PayPal USD (PYUSD) now utilizes its Omnichain Fungible Token (OFT) Standard to facilitate transfers between Ethereum and Solana. This integration aims to eliminate liquidity fragmentation and ensure fast, secure, and cost-effective transactions for users and businesses.
The integration allows users who self-custody their tokens to transfer assets between blockchains without relying on centralized platforms like Venmo or PayPal. Bryan Pellegrino, CEO of LayerZero Labs, stated that the OFT standard unlocks a new level of interoperability for stablecoins, enabling PYUSD to move seamlessly between Ethereum and Solana.
Security and Flexibility in PYUSD Transfers
Each PYUSD transfer is secured by a group of Decentralized Verifier Networks (DVNs) chosen by PayPal USD and Paxos. At launch, the security stack includes verifiers such as Paxos, Google Cloud, and LayerZero Labs DVNs, providing resilient and enterprise-grade protection for transactions. Paxos retains the flexibility to add or replace verifiers, ensuring continued security and eliminating vendor lock-in risks.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, expressed that PYUSD holders will appreciate the flexibility and convenience offered by LayerZero. The use of the LayerZero OFT Standard facilitates PYUSD holders’ choices of which blockchain to use, whether on Ethereum or Solana.
Implications for Digital Commerce
PayPal USD, issued by Paxos Trust Company, is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. It can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD. The integration with LayerZero is expected to enhance digital commerce by delivering faster and more accessible payments, reflecting the future of blockchain-based commerce.
LayerZero’s protocol unifies development across 90 blockchains, allowing developers to create applications that exist on multiple blockchains simultaneously. This includes stablecoins, onchain lending markets, and digital identity solutions. Over 300 teams have built on LayerZero, facilitating 135 million messages between chains.
For more information, the announcement can be found here.
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