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PayPal's Stablecoin Nears Stellar Debut After NYDFS Approval
ByAinvest
Thursday, Aug 21, 2025 11:15 am ET1min read
PayPal's stablecoin, PayPal USD, is nearing its debut on the Stellar blockchain after receiving a non-objection from the New York State Department of Financial Services. Paxos Trust Company, which is issuing the stablecoin, has been granted permission to operate as a regulated trust company in New York State. The launch of PayPal USD on Stellar is expected to expand the stablecoin's reach and provide users with a new option for secure and reliable transactions.
PayPal Holdings' (NASDAQ: PYPL) dollar-backed stablecoin, PayPal USD (PYUSD-USD), is inching closer to its debut on the Stellar (XLM-USD) blockchain following a non-objection update from the New York State Department of Financial Services (NYDFS). Paxos Trust Company, which is issuing the stablecoin, received the update on August 18, 2023, marking a significant step towards bringing PayPal USD to the Stellar network this year [1].The NYDFS' non-objection update comes amidst a backdrop of regulatory scrutiny for Paxos, which was fined by the NYDFS for anti-money laundering deficiencies and compliance failures tied to its previous alliance with crypto exchange Binance. Despite this, the regulatory body has cleared the way for PayPal USD to be issued on Stellar, potentially expanding its reach and providing users with additional access to digital wallets, local payment systems, and cash networks [1].
The launch of PayPal USD on Stellar is expected to offer users a new option for secure and reliable transactions. By leveraging the Stellar network, PayPal USD could benefit from the network's on and off ramps, which facilitate seamless transactions between various digital and traditional financial systems. This development could enhance PayPal's position in the stablecoin market and provide users with more robust financial services.
The approval of PayPal USD on the Stellar blockchain underscores the growing acceptance of stablecoins within the financial ecosystem. As regulatory frameworks evolve, stablecoins like PayPal USD are increasingly seen as a viable alternative to traditional fiat currencies, particularly for cross-border transactions and digital payments.
References:
[1] https://seekingalpha.com/news/4487962-paypals-stablecoin-nears-stellar-debut-after-nydfs-non-objection-update
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