PayPal USD (PYUSD) Plans to Use Stellar for New Use Cases

PayPal has announced plans for its PayPal USD (PYUSD) stablecoin to potentially utilize the Stellar network, subject to regulatory approval from the NYDFS. This move intends to capitalize on Stellar’s capabilities of fast, low-cost payments and broad on and off-ramp access, thereby enhancing PYUSD’s utility in global payments, remittances, and micro-financing. The initiative is expected to improve PYUSD’s usability for everyday financial activities, providing better cross-border payment solutions and merchant services. Moreover, it may boost liquidity and lending opportunities through innovations such as Payment Financing (PayFi) on the Stellar network. The collaboration aims to provide practical financial tools in over 170 countries potentially transforming stablecoins into widely used transactional currencies. The integration relies on regulatory approvals which as of mid-May 2025, remain pending.