PayPal Targets Stellar For PYUSD Transfers

PayPal (PYPL) is seeking approval from New York regulators to mint its PYUSD stablecoin on the Stellar (XLM) network. 

This would extend the dollar-backed token beyond Ethereum (ETH) and Solana (SOL)into a chain purpose-built for low-fee payments. Stellar’s average transaction cost is a fraction of a cent, with settlement in seconds, making it a natural fit for remittances, micro-loans, and merchant payouts. 

If the New York State Department of Financial Services signs off, PYUSD holders could tap more than one hundred seventy countries of on- and off-ramps supported by Stellar anchors.

The pitch is clear. Small businesses often wait days for card settlements or pay hefty FX spreads on cross-border transfers. PYUSD on Stellar could route those flows through a stablecoin that moves at internet speed while keeping dollar parity. 

PayPal has talked a little about PayFi, a payment-financing product that would advance working capital in stablecoins, paid back as receivables clear. Liquidity providers could fund those invoices and earn yield from real-world commerce instead of speculative swaps.

For Stellar, landing a household brand validates a decade of infrastructure work often overshadowed by flashier chains. PYUSD would sit beside USDC, EURC, and other fiat tokens already active on the network, adding fresh volume to Stellar’s decentralized exchange and corridor partners like MoneyGram. 

The integration also dovetails with Stellar’s recent smart-contract upgrade, giving PayPal optional hooks for programmable payments.

But regulatory risk is the wild card. NYDFS has already green-lit PYUSD on Ethereum, but new issuance on another chain means fresh applications, audits, and liquidity stress tests. 

PayPal’s compliance team will need to prove that Stellar’s validators meet the same standards for sanctions screening and network resiliency. Early remittance pilots will likely cap transfers until regulators are satisfied.

If the nod arrives, PYUSD could become the most visible dollar stablecoin on Stellar, driving wallet installs and merchant tools that finally fulfill the network’s original cross-border pitch. If not, Stellar keeps chasing the next big issuer while PayPal sticks to higher-fee chains.

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