PayPal Deploys PYUSD Stablecoin on Stellar Network for Cross-Border Payments

PayPal is expanding the deployment of its USD-backed stablecoin, PYUSD, onto the Stellar blockchain, aiming to enhance cross-border payments and business financing. Stellar offers near-instant transaction settlement at a fraction of a cent in fees, supporting over 170 countries with extensive on/off ramps, making it an ideal network for low-cost, fast remittances and merchant payouts. PayPal is seeking regulatory approval from the New York State Department of Financial Services to mint PYUSD on Stellar, which would complement its existing presence on Ethereum and Solana, and unlock new payment financing products like PayFi that provide real-time working capital to small and medium-sized businesses. This move addresses the global $156 trillion cross-border payment market's inefficiencies by reducing delays and costs, while enhancing liquidity and financial inclusion. However, regulatory scrutiny remains a key challenge, requiring PayPal to ensure Stellar's validators comply with strict sanctions screening and network resiliency standards. The integration also benefits Stellar by adding a household brand to its network and leveraging recent smart-contract upgrades for programmable payments.