TLDR
- PayPal is expanding its stablecoin PYUSD to the Stellar blockchain.
- The move aims to improve cross-border remittances and small business financing.
- PYUSD is already available on Ethereum and Solana blockchains.
- The Stellar integration is pending final regulatory approval from the New York Department of Financial Services.
- Stellar offers fast transaction speeds and low fees across more than 170 countries.
PayPal is set to launch its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), on the Stellar (XLM) blockchain. The move follows preliminary approval from the New York Department of Financial Services and awaits final integration clearance. This expansion targets faster cross-border transactions and greater financial access for global small businesses.
PayPal Expands PYUSD Reach with Stellar
PayPal already operates PYUSD on Ethereum and Solana, expanding its stablecoin reach across major blockchain networks. The addition of Stellar aims to cut costs and boost settlement speeds for international transactions. It aligns with PayPal’s strategy to enhance digital currency infrastructure globally.
Stellar supports over 170 countries and offers fast, low-cost financial services across diverse platforms. Its network includes digital wallets, on- and off-ramps, and links to local banking systems. These tools provide reliable access in markets where traditional banking remains limited.
Stellar’s technical strengths and existing footprint make it a practical platform for PayPal’s next phase of stablecoin deployment. The integration is designed to improve real-time payment flows and enable broader access to digital finance. This could particularly benefit underserved users in developing economies.
Payment Financing Launches with PYUSD on Stellar
A key component of the rollout is Payment Financing (PayFi), a model targeting small and medium-sized business needs. This service allows instant access to working capital disbursed directly in PYUSD via the Stellar network. Businesses can use these funds for inventory, supplier payments, and daily operations.
PayFi delivers transparent, real-time settlement and eliminates friction found in traditional credit systems. It also introduces new liquidity options by involving third-party providers in real-world economic flows. These providers earn returns from business transactions rather than speculative crypto trading.
The Stellar integration enhances the programmability of stablecoins by combining fiat stability with blockchain efficiency. This model supports business growth and smooths global payment challenges. PayPal sees this as a foundation for scalable financial tools using blockchain technology.
Regulatory Path Nears Completion
The New York Department of Financial Services has issued preliminary approval for PYUSD’s Stellar integration. PayPal awaits final clearance following completion of the technical product review. This will mark a significant step in its regulated stablecoin expansion.
Regulatory compliance remains essential as PayPal scales stablecoin availability across multiple networks. The company maintains oversight and transparency standards in every market where PYUSD operates. Once approved, the Stellar version will extend PYUSD’s utility for daily financial needs.
