tl;dr
PayPal's stablecoin, PayPal USD (PYUSD), is set to launch on the Stellar blockchain pending approval from the New York State Department of Financial Services. PYUSD, issued by Paxos Trust Co., is already available on Ethereum and Solana. Stellar focuses on faster, cheaper cross-border payments. PayP...
PayPal is preparing to launch its stablecoin, PayPal USD (PYUSD), on the Stellar blockchain, pending regulatory approval from the New York State Department of Financial Services. This move aims to improve the efficiency of cross-border payments by leveraging Stellar's focus on faster and cheaper global value transfers.
PYUSD, issued by Paxos Trust Co., is already available on the Ethereum and Solana blockchains. By expanding onto Stellar, PayPal hopes to enhance the use of stablecoins—digital tokens backed by assets like U.S. dollars—making payments smoother and more accessible worldwide. PayPal launched PYUSD in 2023 to compete in the crowded stablecoin market.
Stellar's blockchain powers the 19th largest cryptocurrency, XLM, and is known for streamlining cross-border transactions with lower fees and quicker settlement times. May Zabaneh, PayPal's Vice President of Blockchain and Cryptocurrency, emphasized the potential of stablecoins as crypto's "killer app," combining blockchain advantages with fiat stability to unlock real-world value, especially in international payments.
Currently, PYUSD ranks as the 106th largest cryptocurrency, backed by cash equivalents and short-term treasuries. While stablecoins like Tether's USDT and Circle’s USDC dominate the market as the third and seventh largest cryptocurrencies, PYUSD represents PayPal’s push into this expanding space. Historically used by traders to bypass traditional banking for crypto transactions, stablecoins have gained broader acceptance among businesses and banks aiming to streamline payments.
With PYUSD’s prospective integration into Stellar, PayPal envisions a "seamless flow of value across global markets,” reflecting a broader trend of stablecoins evolving from trading tools into essential payment solutions embraced by mainstream finance.