PayPal has announced plans to make its US dollar stablecoin, PayPal USD (PYUSD), available on the Stellar network, pending regulatory approval from the New York State Department of Financial Services (NYDFS).

Stellar is a blockchain developed to support fast and cost-effective payments, with a focus on practical real-world applications.

If approved, the expansion to Stellar would allow PYUSD to benefit from the network’s lower transaction costs, faster processing times, and simplified integration.

This would serve as an additional blockchain option alongside Ethereum and Solana, potentially improving PYUSD’s use in payments, commerce, and micro-financing.

The availability of PYUSD on Stellar is expected to support cross border payments and improve access to essential financial services.

It could also help connect the digital economy with real world financial infrastructure through a wide range of on and off ramp solutions.

These capabilities could make PYUSD more accessible for everyday transactions, remittances, and business operations such as working capital and small business loans, areas where the Stellar network already has a presence.

“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.

Stellar’s infrastructure offers integration with local payment systems, digital wallets, and cash networks across over 170 countries.

This could broaden access to PYUSD for a wider range of users, particularly in regions with limited traditional financial services.

“Stellar is the network for fast, low cost, and trusted global payments at scale. By bringing PYUSD to 170 plus countries, we are transforming stablecoins into practical financial tools that millions of everyday users and merchants can actually use,”

said Denelle Dixon, Chief Executive Officer of the Stellar Development Foundation.

“Together, we are bringing stable digital currency to small businesses and individuals in emerging markets all over the globe.”

The move could also support the growth of digital financing solutions such as Payment Financing, or ‘PayFi’.

This model allows SMBs that face delayed payments or upfront funding needs to access working capital in real time, disbursed in PYUSD.

These funds could be used for managing inventory, paying suppliers, or meeting other operational costs, with transactions settling instantly on the Stellar network.

Liquidity providers may participate by funding these transactions and earning returns linked to real economic activity.

The potential integration of PYUSD on Stellar is aimed at improving the efficiency of cross border money transfers, increasing transparency in transaction costs, and reducing delays in settlement processes.

Featured image credit: Edited by Fintech News America, based on image by Freepik