PayPal moves PYUSD stablecoin to Stellar
PayPal to launch PYUSD on Stellar pending NYDFS approval
PayPal has announced that its stablecoin, PayPal USD (PYUSD), will soon be available on the Stellar (XLM) blockchain, pending regulatory approval from the New York State Department of Financial Services (NYDFS).
The move follows prior integrations with Ethereum, Solana, and Cardano, and reflects PayPal’s increasing commitment to multichain adoption for digital payments, reports Crypto News.
Stellar’s reputation for fast, low-cost transactions makes it a logical next step for enhancing PYUSD’s utility—especially for businesses and users in emerging markets where transaction efficiency is critical.
Stellar integration unlocks business use cases through “PayFi”
More than just another blockchain port, the Stellar integration enables real-time payment financing—dubbed “PayFi”—that could be transformative for small and medium-sized enterprises (SMEs).
With instant settlement capabilities, businesses will be able to access working capital in PYUSD to manage inventory, supplier payments, and liquidity gaps, potentially smoothing out cash flow challenges caused by delayed client payments. Liquidity providers on Stellar may also benefit, offering capital to support these operations and earning returns on real-world economic activity.
Broader PYUSD ecosystem gains momentum
Since its launch on Ethereum in August 2023, PYUSD has steadily gained traction. In February 2025, PayPal announced PYUSD payouts through Hyperwallet, targeting cross-border payments for freelancers and vendors—a rollout expected to complete by end of Q2. Adoption has been further incentivized through a 3.7% APY yield for U.S. users who hold PYUSD in PayPal or Venmo wallets, paid monthly.
Meanwhile, Coinbase has waived all fees for PYUSD transactions and offers 1:1 USD redemptions, easing institutional and merchant adoption. If the Stellar integration receives regulatory clearance, PayPal’s stablecoin will be better positioned to function as a globally accessible, programmable payment layer, with seamless fiat-to-digital onramps and broader financial inclusivity.
Recently we wrote that the U.S. Senate has voted to end debate on the Guiding and Empowering National Innovation for Unified Standards (GENIUS) Act, a major stablecoin regulation bill, moving it toward final passage next Monday.
