PayPal Expands PYUSD Stablecoin to Stellar Blockchain for Faster Cross-Border Payments

PayPal has announced the expansion of its PYUSD stablecoin to the Stellar blockchain, enhancing its reach beyond Ethereum and Solana. This strategic move aims to improve the financial infrastructure for users by leveraging Stellar's low fees and high-speed transactions. The expansion is contingent upon regulatory approval by New York authorities, which is currently pending.

May Zabaneh, Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, highlighted the significance of stablecoins in the digital currency landscape. "For years, stablecoins have been deemed crypto’s ‘killer app’ by combining the power of the blockchain with the stability of fiat currency. As we see cross-border payments being a key area where digital currencies can provide real-world value, working with Stellar will help advance the use of this technology and provide benefits for all users," she stated.

The move promises to advance cross-border payments by utilizing Stellar's capabilities, potentially driving increased network utility and broader payment flows involving its native token, XLM. Ethereum and Solana remain integral parts of PayPal's network, continuing support alongside Stellar.

Financial implications include broader access to stablecoin transactions, as the anticipated regulatory nod is expected to spur further institutional engagement. Historical precedents of similar expansions have shown positive outcomes without significant network disruption. Potential regulatory outcomes hinge on New York State Department's decision, which might shape future strategies. Importantly, the SEC's closure of its investigation in April 2025 reflects a favorable stance on PYUSD's compliance, showcasing its growing reliability.

The integration with Stellar will also open up new opportunities for small and medium-sized businesses, providing them with real-time working capital through Payment Financing or 'PayFi'. This innovation in digital finance allows businesses to access new sources of funding, which can be used to manage operational needs such as paying suppliers or managing inventory, with instant settlement on Stellar. Liquidity providers can fund these opportunities and earn potential, sustainable benefits from real-world economic activity.

Denelle Dixon, Chief Executive Officer of the Stellar Development Foundation, highlighted the transformative potential of this collaboration. "By bringing PYUSD to 170+ countries, we're transforming stablecoins into practical financial tools that millions of everyday users and merchants can actually use," she stated. This expansion is set to drive efficient modernized money movement, cost transparency, and minimize settlement delays by unlocking better borderless financial flows.

The integration of PYUSD with the Stellar network is part of PayPal's broader strategy to enhance the utility of its stablecoin. The move is expected to provide users with additional options beyond Ethereum and Solana, offering a more seamless flow of value across global markets. This expansion aligns with PayPal's commitment to leveraging blockchain technology to provide practical financial tools for users and merchants worldwide.

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