PayPal Expands PYUSD Stablecoin to Sei Network, Introducing Permissionless PYUSD0

September 19, 2025 – PayPal has expanded its U.S. dollar–backed stablecoin, PYUSD, to the Sei Network in a move that could reshape on-chain payments. Announced on , the rollout introduces PYUSD0, a permissionless variant built with LayerZero interoperability. The upgrade positions Sei as a high-speed settlement hub while reinforcing PayPal’s push to integrate stablecoins into everyday finance for its 434 million global users.

Market Reaction

The Sei listing elevates PayPal’s stablecoin beyond retail apps like Venmo and Xoom into DeFi markets. With PYUSD already commanding a $1.3 billion market cap, even modest adoption on Sei could significantly raise its total value locked (TVL). On social media, sentiment skewed bullish as users praised Sei’s “speed advantage” and speculated on price momentum for $SEI and LayerZero’s $ZRO token. Institutional watchers noted that the expansion could attract payment providers seeking cheaper and faster cross-border solutions.

Skepticism & Risks

Despite enthusiasm, challenges remain. Regulatory scrutiny of global stablecoins is intensifying, particularly in the U.S. and EU, raising compliance questions for permissionless variants like PYUSD0. Adoption also depends on developers building liquidity pools, lending protocols, and trading pairs around the token. Without strong on-chain demand, Sei may struggle to retain inflows beyond initial hype. Skeptics warn that PayPal’s centralized oversight could clash with DeFi’s ethos, even as it seeks regulatory alignment.

Tech & Utility

PYUSD0 leverages LayerZero’s Stargate Hydra system, ensuring full fungibility with PYUSD across chains like Ethereum, Solana, Arbitrum, and Stellar. Transfers require no intermediaries, allowing instant swaps between networks. On Sei, optimized for high throughput and sub-second finality, the stablecoin could enable e-commerce checkouts, P2P transfers, and DeFi yield strategies. PayPal confirmed no immediate user action is required, with the rollout extending to other chains such as Tron, Avalanche, Aptos, and Flow. Analysts see the move as a step toward borderless finance powered by trusted infrastructure.

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