PayPal announced today plans to make the PayPal USD stablecoin (PYUSD) available on the Stellar network, pending regulatory approval from the New York State Department of Financial Services (NYDFS)1. Stellar is a blockchain designed for fast, low-cost, and utility payments in the real world. By potentially expanding to Stellar, PYUSD leverages the speed of the network, low transaction costs, and ease of integration to enhance its utility for real-world payments, commerce, and microfinancing, offering an additional option to Ethereum and Solana.
PYUSD on Stellar can be used for fast and affordable cross-border payments and expanded access to essential financial services, while connecting the digital and physical worlds with a wide range of entry and exit points. Users could also benefit from better daily payment options and financing solutions such as working capital and business loans - use cases that are already thriving on the Stellar network - ultimately enabling a smoother flow of value in global markets.
"For years, stablecoins have been considered the 'star application' of crypto by combining the power of blockchain with the stability of fiat currency. As we see cross-border payments as a key area where digital currencies can provide real value, working with Stellar will help advance the use of this technology and provide benefits for all users," said May Zabaneh, Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal.
An expansion on Stellar would give PYUSD users access to its extensive network of entry and exit points, providing additional access through digital wallets, and connecting to local payment systems and cash networks. Access to Stellar's extensive infrastructure will enhance how people can use PYUSD in their everyday financial activities, from payments to remittances and business services.
"Stellar is the network for fast, low-cost, and reliable global payments at scale. By bringing PYUSD to over 170 countries, we are transforming stablecoins into practical financial tools that millions of everyday users and merchants can truly use," shared Denelle Dixon, CEO of Stellar Development Foundation. "Together, we are bringing stable digital currency to small businesses and individuals in emerging markets around the world."
