PayPal Extends PYUSD Stablecoin to Stellar Network

Expansion to Stellar Network

PayPal announced the extension of its PYUSD stablecoin to Stellar’s blockchain, aiming to improve the financial infrastructure for users. Previously deployed on Ethereum and Solana, this move further solidifies PayPal’s position in digital finance.

Stellar Development Foundation maintains the targeted blockchain, and the partnership aims to capitalize on Stellar’s low fees and high-speed transactions. The expansion is contingent upon regulatory approval by New York authorities, which is currently pending.

May Zabaneh, Vice President, Blockchain, Cryptocurrency, and Digital Currency Group, PayPal, stated, “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.”

The move promises to advance cross-border payments by utilizing Stellar’s capabilities, potentially driving increased network utility and broader payment flows involving its native token, XLM.

Ethereum and Solana remain integral parts of PayPal’s network, continuing support alongside Stellar.

Financial implications include broader access to stablecoin transactions, as the anticipated regulatory nod is expected to spur further institutional engagement. Historical precedents of similar expansions have shown positive outcomes without significant network disruption.

Potential regulatory outcomes hinge on New York State Department’s decision, which might shape future strategies. Importantly, the SEC’s closure of its investigation in April 2025 reflects a favorable stance on PYUSD’s compliance, showcasing its growing reliability.