PayPal has announced its intent to expand its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), to the Stellar blockchain network—pending final regulatory approval from the New York State Department of Financial Services (NYDFS).
Stellar is designed to support real-world financial applications with its speed, cost effectiveness and worldwide scale payments. Meanwhile, Stellar’s rival XRP Ledger has also seen several stablecoins going live on its network including Ripple’s RLUSD. Chances of Stellar to challenge XRP are high now considering the users of PYUSD to be able to experience quicker and affordable transactions.
In another major development for blockchain-based payments, StraitsX has officially launched its Singapore dollar-backed stablecoin, XSGD, on the XRP Ledger (XRPL). Licensed by the Monetary Authority of Singapore, StraitsX brings added trust and transparency to the digital currency space, with each XSGD token backed 1:1 by reserves held at DBS Bank and Standard Chartered.
By having XSGD launched on XRPL (as part of a partnership with Ripple), the network utility to developers, fintechs and financial institutions is increased. The fame of XRPL as a fast, secure, and value-exchangeable real-world currency makes it an excellent platform to conduct real-time payments and innovate finances in Southeast Asia and other regions.
The users of PYUSD would be able to experience quicker and affordable transactions, mainly when it comes to international remittances and everyday financial requirements. The ecosystem of the network has a healthy number of on- and off-ramps, connecting digital wallets, fiat systems, and localized payment channels, providing PYUSD the ability to benefit individuals and merchants more effectively in more than 170 countries.
“Stablecoins have long been viewed as a breakthrough for digital finance by offering the reliability of fiat currency with the innovation of blockchain,” said May Zabaneh, PayPal’s Vice President of Blockchain and Digital Currencies. “Expanding to Stellar allows us to unlock more real-world utility, especially in cross-border transactions, for users worldwide.”
Stellar Development Foundation CEO Denelle Dixon emphasized the practical impact of this collaboration. “Our mission is to provide fast, low-cost global payments. PYUSD on Stellar brings stablecoins to life for millions—making them accessible tools for merchants, individuals, and small businesses, particularly in emerging markets.”
In addition to enabling payments and remittances, the integration aims to support financing through an emerging model called “Payment Financing” (PayFi). The innovation will allow small and middle-sized companies to receive individual working capital, in the form of PYUSD, immediately to finance operational requirements, including inventory financing and supplier payments, and have it settled in real time on the Stellar blockchain.
PYUSD is a stablecoin issued by a regulated financial institution, Paxos Trust Company, licensed by NYDFS to engage in virtual currency business. This integration to Stellar is part of the digital finance evolution that PayPal has been dedicated to since long, aiming at developing inclusive financial opportunities globally.
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