PayPal (PYPL) Expands Its PYUSD Stablecoin to the Stellar Blockchain Network

PYUSD, which already operates on Ethereum and Solana, will expand to Stellar to explore new areas like payment financing, or "PayFi".

PayPal (PYPL) is bringing its PYUSD stablecoin to the Stellar blockchain network in a move to diversify the token’s use cases for cross-border remittances and payment financing, the companies said Wednesday.

PYUSD, which is already on Ethereum and Solana, will be expanding to Stellar to open up new avenues for PayFi, or payment financing. This allows small and medium-sized businesses who face delayed receivables or pre-funding requirements to access new sources of real-time working capital, disbursed in PYUSD, according to a press release.

That capital can then be used to pay suppliers, manage inventory or address other operational needs with instant settlement on Stellar, the companies said.

Stablecoins, digital tokens whose value is pegged to a real-world asset, first rose to popularity as a way to trade in and out of cryptocurrencies without having to convert to fiat cash. More recently, however, much of the action has been on the rapid growth of cross border remittances and other innovations within the payments arena.

“For years, stablecoins have been deemed crypto’s ‘killer app’ by combining the power of the blockchain with the stability of fiat currency. As we see cross border payments being a key area where digital currencies can provide real world value, working with Stellar will help advance the use of this technology and provide benefits for all users,” said May Zabaneh, PayPal’s vice president for blockchain, cryptocurrency and digital currencies.

The partnership announcement has been approved by the New York Department of Financial Services (NYDFS), which requires a final review of the product integration before it can launch, Stellar said in an email.