PayPal USD (PYUSD) Plans to Use Stellar for New Use Cases

To extend everyday payments, remittances, and 'PayFi' solutions to millions of users and merchants

PayPal (NASDAQ:PYPL) announced plans to make its stablecoin, PayPal USD (PYUSD), available on the Stellar (CRYPTO: XLM) network, pending approval from the New York State Department of Financial Services (NYDFS).

PYUSD was first launched in July on Ethereum (CRYPTO: ETH) and later Solana (CRYPTO: SOL). Expanding to Stellar provides an additional option for leveraging the speed, low transaction costs, and ease of integration of each respective network to maximize the utility of PYUSD for real-world payments, commerce, and micro-financing.

“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, Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal.

What Happened: PYUSD on Stellar can be used for fast, affordable cross-border payments and expanded access to essential financial services while bridging the digital and physical world with a vast array of on and off ramps.

Users may benefit from improved daily payment options and financing solutions such as working capital and business loans - use cases already thriving on the Stellar network - ultimately enabling a more seamless flow of value across global markets.

“Stellar is the network for fast, low-cost, and trusted global payments at scale. By bringing PYUSD to 170+ countries, we’re transforming stablecoins into practical financial tools that millions of everyday users and merchants can actually use,” said Denelle Dixon, Chief Executive Officer of Stellar Development Foundation. “Together, we are bringing stable digital currency to small and medium-sized businesses and individuals in emerging markets over the globe.”

Related Link: Stellar Reaches Milestone With 80 Billion Value Coins ProcessedAnnually: A Deep Dive into the Stellar NetworkPYUSD on Stellar can also enhance liquidity and financing opportunities through Payment Financing or 'PayFi', an emerging innovation in digital finance. Small and medium-sized businesses that face delayed receivables or pre-funding requirements would be able to access new sources of real-time working capital, disbursed in PYUSD. This capital can be used to pay suppliers, manage inventory, or address other operational needs – with instant settlement on Stellar. Liquidity providers can fund these opportunities and earn potential, sustainable benefits from real-world economic activity.

PYUSD on Stellar can drive efficient modernized money movement, cost transparency, and minimize settlement delays by unlocking better borderless financial flows.

About PayPal USD (PYUSD)

PayPal USD is issued by Paxos Trust Company, which is a fully chartered limited purpose trust company and is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

Paxos holds a vast majority of its assets in U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, which are used to fully back (or "fund") the digital assets it issues.

PayPal (NMLS ID #: 910457) is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

About The Stellar Network

The Stellar network is a decentralized, fast, scalable, and uniquely sustainable blockchain built for financial products and services. It offers builders smart contracts functionality, and a protocol optimized for payments, with a design intended to keep fees low and to provide transaction speeds that can scale with increased adoption. Financial institutions and innovators worldwide issue assets and settle payments on the Stellar network, which has processed billions of operations with millions of accounts since the network was first launched.