On June 11, PayPal announced plans to launch its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), on the Stellar blockchain network, pending regulatory approval from the New York State Department of Financial Services. If approved, the move would mark the expansion of PYUSD beyond its current availability on Ethereum and Solana.

PayPal described Stellar as a blockchain tailored for low-cost, high-speed payments with strong real-world utility. By adding support for Stellar, the company aims to improve the accessibility and usability of PYUSD for payments, cross-border transfers, and financial services. The integration is expected to enhance daily payment options and provide users with expanded access to financing tools such as working capital and small business loans—areas where Stellar is already active.

The press release emphasized Stellar’s existing global infrastructure, including a broad network of on- and off-ramps, local payment systems, and digital wallets, which could help bring PYUSD to users in over 170 countries. PayPal also highlighted potential benefits for liquidity and settlement through PayFi, an emerging digital financing mechanism that would allow businesses to access real-time capital disbursed in PYUSD on Stellar.

May Zabaneh, PayPal’s vice president for digital currencies, said the partnership would help advance the use of blockchain in cross-border payments. Denelle Dixon, CEO of the Stellar Development Foundation, said the collaboration could help bring practical stablecoin use to emerging markets and small businesses globally.

PYUSD is issued by Paxos Trust Company and is fully backed by cash and cash-equivalent reserves, with a fixed redemption value of $1.00 per token.

Earlier this in a short video released by Stellar Foundation, Ian Burrill, a Senior Director at PayPal who manages the crypto engineering team, explained why his firm was excited about the launch of PYUSD on Stellar. Burrill said that Stellar is a fast, low-cost network and it extends PYUSD's reach to 180 plus countries. He went on to say that enabling merchants to use PYUSD on Stellar lets them send money in real-time, which makes for more efficient capital management.

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