PayPal, a giant in the payments space, continues to solidify its position in the digital asset arena by expanding its PayPal USD (PYUSD) stablecoin to the Stellar blockchain. This strategic move, pending approval from the New York State Department of Financial Services, promises to bring significant improvements to the cross-border payment sector.
PYUSD, launched on #Paypal in 2023 to enter the competitive stablecoin market, is now available on the Ethereum and Solana blockchains. The addition of Stellar, a well-known crypto network for its fast and low-cost cross-border payment processing, demonstrates PayPal's vision for optimizing global value flow.
Ms. May Zabaneh, Vice President of PayPal's Blockchain and Cryptocurrency Division, emphasized: "For many years, stablecoins have been regarded as the 'killer app' of crypto, combining the power of blockchain with the stability of fiat currency. We see cross-border payments as a key area where digital currency can bring practical value. Collaborating with #stellar will help drive the use of this technology and benefit all users."
PYUSD, issued by Paxos Trust Co. and backed by cash and short-term Treasury bonds, is the 106th largest stablecoin with a market cap of under 1 billion USD. Although the stablecoin market is dominated by giants like Tether's USDT and Circle's $USDC (the third and seventh largest cryptocurrencies respectively), PayPal's continuous expansion into various blockchains reflects their efforts to diversify access and application of #PYUSD .
Initially, stablecoins were primarily used by traders to enter and exit crypto trades without going through traditional banking systems. However, they have become increasingly popular as large businesses and banks show interest in launching stablecoins to streamline payment processes. PayPal's expansion of PYUSD to Stellar is a significant step, not only affirming the position of stablecoins in digital payments but also opening up new possibilities for seamless value transfer in the global market.
