PayPal Expands PYUSD to Stellar Blockchain for Faster, Global Payments

PayPal is expanding the reach of its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), by integrating it with the Stellar blockchain network, pending regulatory approval from the New York State Department of Financial Services. This move builds on PYUSD’s current availability on Ethereum and Solana, aiming to boost speed, cost-efficiency, and global accessibility.

Stellar, known for its low fees and high-speed transactions, offers an ideal platform for real-world financial use cases such as payments, cross-border remittances, and small business financing. PayPal highlighted that launching PYUSD on Stellar will enhance liquidity, streamline settlements, and expand financial services access in over 170 countries.

The integration leverages Stellar’s global infrastructure, including local payment rails, digital wallets, and a wide on/off-ramp network. Businesses may benefit from real-time capital access through PayFi, a new digital financing tool that will distribute funds in PYUSD via Stellar. May Zabaneh, PayPal’s VP of Digital Currencies, noted the move strengthens blockchain adoption for cross-border payments, while Stellar Development Foundation CEO Denelle Dixon emphasized its potential for financial inclusion in emerging markets.

PYUSD is issued by Paxos Trust and is fully backed by cash and equivalents, maintaining a 1:1 redemption value with the U.S. dollar.

In a video from Stellar, PayPal’s Senior Director Ian Burrill praised Stellar for enabling fast, global transactions in over 180 countries. This could make PYUSD a more practical tool for merchants seeking efficient capital management.

Following the announcement, Stellar’s XLM token surged with high trading volume and price volatility. XLM hit a high of $0.416 on July 12, up from a low of $0.345, showing strong momentum and support at $0.385, with technical resistance near $0.40.