PayPal Expands PYUSD Stablecoin to Stellar for Faster Settlements

PayPal has announced the expansion of its PYUSD stablecoin to the Stellar platform, aiming to enhance the real-world utility of PYUSD through faster settlements, lower costs, and broader financial access. This move is subject to clearance by the New York State Department of Financial Services (NYDFS).

By integrating with Stellar, PYUSD will support cross-border payments, micro-financing, and merchant services across more than 170 countries. This expansion leverages Stellar’s infrastructure, which is designed for speed, low-cost transactions, and seamless financial integration. PayPal aims to simplify global payments and improve access to financial services, benefiting users with a wide range of on and off ramps, including connections to local payment networks and cash systems.

The integration of PYUSD on Stellar brings instant working capital, seamless liquidity, and new financial tools for small and medium-sized businesses globally. This includes the introduction of new financing models such as Payment Financing (PayFi), which supports businesses facing cash flow delays. With PayFi, businesses can access real-time working capital directly in PYUSD, enabling them to pay suppliers, manage inventory, or cover operational costs.

Liquidity providers can fund these capital needs and earn returns from real-world economic activity, fostering a dynamic liquidity ecosystem with faster settlements. This reduces delays and enhances the flow of funds across global markets. PYUSD on Stellar also enhances merchant services, daily payments, and remittances, offering faster settlement times and improved cost transparency for users worldwide.

PYUSD is issued by Paxos Trust Company, a regulated entity licensed by NYDFS, and is fully backed by U.S. dollar reserves, including Treasuries and similar assets. Users can buy and sell PYUSD via PayPal and Venmo at a stable rate of $1.00 per token. Stellar offers a sustainable, scalable blockchain tailored for financial operations, supporting smart contracts and optimized for payments. Financial institutions globally use Stellar to issue assets and settle payments, making it a robust platform for PayPal’s expansion.