PayPal Expands PYUSD to Stellar (XLM)

PayPal has announced that its U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), will soon be available on the Stellar blockchain. The move aims to reshape cross-border remittances and small business financing. Currently, the expansion is pending final regulatory approval from the New York Department of Financial Services (NYDFS). Notably, PYUSD is already live on Ethereum and Solana. The expansion to Stellar represents a further step toward building a faster, lower-cost, and more accessible global payment infrastructure. Why Stellar? Stellar boasts real-world utility and offers near-instant transaction speeds and low fees. This makes it ideal for payments, remittances, and decentralized financial services. The network's infrastructure spans over 170 countries and includes a wide range of on- and off-ramps, digital wallets, and integrations with local cash and banking systems. This makes it particularly attractive for everyday users, merchants, and small businesses, especially in emerging markets, where traditional financial systems can be slow, expensive, or inaccessible. Enabling 'PayFi': Real-Time Working Capital for SMBs A standout feature of this partnership is the introduction of Payment Financing (PayFi). This model enables small and medium-sized businesses (SMBs) to access real-time working capital, disbursed directly in PYUSD on Stellar. Businesses can use these funds to pay suppliers, manage inventory, or cover other operational expenses, with the added benefits of instant settlement and complete transparency. Also liquidity providers can participate in these financing flows and earn returns from real-world economic activity rather than speculative trading. Boosting Stablecoin Utility Beyond DeFi Stablecoins like PYUSD have long been one of crypto’s most practical applications as they combine blockchain's programmability with the stability of fiat currency.  May Zabaneh, PayPal's Vice President of Blockchain and Crypto, explained that cross-border payments are a major area where digital currencies deliver tangible benefits. She noted that the partnership with Stellar will support the development and practical use of this technology. The partnership has received preliminary approval from the NYDFS, which oversees stablecoin compliance in New York. A final review of product integration is underway before the Stellar-based PYUSD officially goes live. As Denelle Dixon, CEO of the Stellar Development Foundation, put it: "Together, we bring stable cryptocurrency to individuals and small businesses in developing markets globally."