PayPal's PYUSD Stablecoin Is Coming to the Stellar Blockchain

PayPal is set to bring its stablecoin PYUSD to the Stellar blockchain, pending regulatory approval.

PayPal is bringing its stablecoin, PayPal USD (PYUSD), to the Stellar (XLM) blockchain, pending approval from the New York State Department of Financial Services, the company announced.

PYUSD is a dollar-linked stablecoin that was launched by PayPal in July last year and is regulated by the New York State Department of Financial Services. It is designed to offer a stable and efficient digital currency for payments, capital flows, and trade.

The integration with Stellar, known for its speed and low-cost transactions, will provide more options for consumers to access and use PYUSD through digital wallets, local bank connections, and cash systems.

In addition to expanding consumer access, the integration with Stellar will open up new avenues for liquidity and faster, more efficient capital flows for small and medium-sized businesses.

Using Stellar’s real-time settlement capabilities, businesses will be able to access instant working capital in PYUSD to pay suppliers, manage inventory, or cover other expenses. This approach, often referred to as Payment Financing or “PayFi,” will be especially useful for businesses that deal with delayed payments or need upfront costs.

Liquidity providers on the Stellar network can also support these financing needs and potentially earn returns by funding real-world economic activity.

PYUSD was initially launched on the Ethereum (ETH) blockchain in August 2023. It was later made available on Solana (SOL) in late 2023, and then expanded to Cardano (ADA) earlier this year.

Earlier this year, Coinbase, the largest U.S. crypto exchange, began offering zero-fee transactions for PYUSD and introduced 1:1 USD redemptions, aiming to improve access for merchants and institutional users.

Moreover, to further incentivize adoption, PayPal will begin offering a 3.7% annual yield—paid monthly—to U.S. users holding PYUSD in PayPal or Venmo wallets. This move is part of PayPal's broader strategy to boost PYUSD adoption and expand its role in global payments.

Notably, PayPal announced in February that it will enable PYUSD payouts via its Hyperwallet platform by the end of Q2 this year, targeting cross-border payments for vendors and freelancers.