KEY TAKEAWAYS
- PayPal plans to integrate its stablecoin, PayPal USD (PYUSD), with the Stellar network, pending regulatory approval.
- This integration aims to leverage Stellar’s fast and low-cost transaction capabilities to enhance PYUSD’s utility in cross-border payments.
- The collaboration could transform stablecoins into practical financial tools, benefiting small businesses and individuals in emerging markets.
- PayPal’s expansion to Stellar is expected to improve money movement efficiency and liquidity, though it awaits approval from the NYDFS.
New York City, NY – June 11, 2025 – PayPal has announced plans to make its stablecoin, PayPal USD (PYUSD), available on the Stellar network, contingent upon regulatory approval from the New York State Department of Financial Services (NYDFS). This move aims to leverage Stellar’s capabilities for fast and low-cost payments, enhancing PYUSD’s utility in real-world applications.
Stellar is a blockchain designed to facilitate quick and affordable transactions, making it an attractive option for expanding PYUSD’s reach beyond its current availability on Ethereum and Solana. By integrating with Stellar, PYUSD could offer enhanced options for cross-border payments and access to financial services, bridging digital and physical transactions through a wide array of on and off ramps.
Enhancing Financial Services and Global Reach
According to May Zabaneh, Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, stablecoins have long been considered a key application of blockchain technology due to their combination of blockchain’s power and fiat currency stability. Zabaneh emphasized the potential for digital currencies to add real-world value, particularly in cross-border payments, and noted that collaboration with Stellar could advance this technology for all users.
Denelle Dixon, CEO of the Stellar Development Foundation, highlighted that the integration of PYUSD with Stellar could transform stablecoins into practical financial tools, accessible to millions of users and merchants across 170+ countries. This expansion could provide small businesses and individuals in emerging markets with stable digital currency options.
Potential Benefits for Businesses and Users
The integration of PYUSD on Stellar could also enhance liquidity and financing opportunities through innovations like Payment Financing, or ‘PayFi.’ This would allow small and medium-sized businesses facing delayed receivables or pre-funding requirements to access real-time working capital in PYUSD, with instant settlement on Stellar. Liquidity providers could fund these opportunities, potentially benefiting from real-world economic activity.
PayPal’s expansion to Stellar is set to improve the efficiency of money movement, cost transparency, and minimize settlement delays, thereby unlocking better borderless financial flows. However, any new product, service, or activity will require NYDFS approval, which has not yet been granted as of May 14, 2025.
For more details, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
PayPal’s plan to launch its PYUSD stablecoin on the Stellar network, pending regulatory approval, represents a strategic move to leverage Stellar’s capabilities for enhanced cross-border payments and financial services. This integration aims to expand PYUSD’s utility beyond its current platforms, Ethereum and Solana.
Recent industry reports indicate that cross-border payments using stablecoins are expanding due to their unmatched speed and lower transaction costs compared to traditional banking. This aligns with PayPal’s strategy to enhance PYUSD’s real-world applications through Stellar’s network.
As per insights from Investing.com, experts highlight that leveraging Stellar’s infrastructure will significantly enhance PYUSD’s potential for applications like cross-border payments and micro-financing. This supports PayPal’s broader strategy to provide embedded financial services and practical tools for users globally.
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