In a groundbreaking move for the fintech world, PayPal announced on June 11, 2025, that its stablecoin, PayPal USD (PYUSD), will expand to the Stellar blockchain. This integration, pending final approval from the New York State Department of Financial Services (NYDFS), marks a significant step toward revolutionizing global payments. With Stellar’s lightning-fast transactions and near-zero fees, PYUSD is set to become a game-changer for merchants, small businesses, and consumers worldwide.
Why Stellar? The Perfect Match for PYUSD
PYUSD, launched in 2023, is a U.S. dollar-backed stablecoin issued by Paxos Trust Company. Already live on Ethereum and Solana, it’s fully supported by dollar deposits and U.S. Treasuries, ensuring stability. However, Ethereum’s high gas fees and Solana’s occasional network hiccups have limited its efficiency for microtransactions and cross-border payments. Enter Stellar—a blockchain built for speed, scalability, and low-cost financial services.
Stellar processes transactions in 3-5 seconds with fees as low as $0.000005 per operation, making it ideal for global remittances and everyday payments. With access to over 170 countries and a network of 8 million accounts, Stellar offers PayPal a platform to scale PYUSD’s reach. May Zabaneh, PayPal’s Vice President of Blockchain and Digital Currencies, stated, “Stellar’s infrastructure empowers us to deliver real payments for real merchants with global reach.”
What This Means for Users and Businesses
The PYUSD-Stellar integration aims to transform cross-border payments and introduce “PayFi” (Payments Finance). Small and medium-sized businesses (SMBs) can access real-time working capital in PYUSD, helping them manage inventory, pay suppliers, or handle operational costs with instant settlement. For consumers, this means faster, cheaper remittances—no more waiting days for international transfers.
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Also Read: PayPal’s PYUSD Stablecoin Nears $1 Billion Milestone with Solana Integration
Denelle Dixon, CEO of the Stellar Development Foundation, emphasized the impact: “We’re transforming stablecoins into practical financial tools that millions can use, especially in emerging markets.” This move also positions PYUSD as a strong competitor to stablecoin giants like USDT and USDC, leveraging Stellar’s efficiency to carve out a niche in the $150 trillion global payments market.
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Here’s the official announcement from Stellar:
A Step Toward Mainstream Adoption
PayPal’s initiative reflects a larger effort to integrate stablecoins into routine financial activities. With its 200,000+ merchant network, PayPal aims to make PYUSD a mainstream payment tool. Future plans include tokenized lending, supply-chain financing, and yield programs offering higher APY to incentivize adoption. By connecting traditional finance with Web3, PayPal is paving the way for a new generation of decentralized payment solutions.
For more details, check out the official report on Stellar’s website.
FAQs
What is PYUSD, and how does it work on Stellar?
PYUSD is PayPal’s U.S. dollar-backed stablecoin. On Stellar, it enables fast, low-cost transactions for payments, remittances, and financing, leveraging Stellar’s efficient blockchain.
When will PYUSD on Stellar be available?
Subject to NYDFS approval, PYUSD on Stellar may launch for U.S. users by late 2025, followed by a broader global rollout.
How does this benefit small businesses?
With Stellar’s fast transactions and low fees, SMBs can access real-time working capital in PYUSD, efficiently manage expenses, and settle payments instantly.
