PayPal Looks to Bring Digital Dollar PYUSD to the Stellar Network
PayPal is preparing to expand the use of its digital stablecoin, PayPal USD (PYUSD), by introducing it to the Stellar blockchain. This initiative aims to increase access to affordable and efficient payments, financial services, and small business support across a broader global market. The move is still subject to regulatory approval from the New York State Department of Financial Services.
PYUSD is issued by Paxos Trust Company, a regulated financial institution. While PYUSD is already available on blockchain platforms like Ethereum and Solana, this new plan will make it compatible with Stellar’s network as well.
Image 1: PayPal (Source: ECEBiS)
Expanding Access to Everyday Financial Tools
The addition of PYUSD to the Stellar blockchain is expected to make it more useful in daily life. The Stellar network supports a range of financial activities, such as quick money transfers, low-cost payments, and business-related financial services. It connects to digital wallets, banks, and cash networks in over 170 countries, allowing users to move money easily between the digital and physical world.
One major focus is on cross-border payments. These are often costly and slow, especially in developing nations. PYUSD on Stellar would allow people to send funds internationally with much lower fees and shorter wait times, giving families and individuals better access to their money.
Stellar + @PayPal = payment structure that delivers. https://t.co/a3o57ybMx7
— Stellar (@StellarOrg) June 11, 2025
The partnership also intends to make it easier for people to use PYUSD for remittances. Workers living abroad often send part of their income back to families in their home countries. Using Stellar’s infrastructure, they could transfer PYUSD quickly, securely, and with minimal fees.
May Zabaneh, who leads PayPal’s Blockchain, Cryptocurrency, and Digital Currency Group, sees this as an opportunity to bring practical benefits to digital currency users. She believes that working with Stellar will allow PYUSD to serve more people and solve real-world money movement challenges.
Support for Small Businesses Through PayFi
This expansion will also support, Payment Financing, often referred to as “PayFi.” With PYUSD available on Stellar businesses could receive working capital instantly.
The funds would be delivered directly in PYUSD and could be used to buy supplies, cover wages, or manage stock. Since the Stellar network allows fast settlements, the entire process would happen in real time. That means businesses wouldn’t have to wait for bank transfers or traditional loan approvals.
PayFi also opens the door for investors who want to support small businesses by providing liquidity. In return, those investors could benefit financially by funding real-world economic activity. By offering immediate access to financing, the initiative hopes to improve business stability and support economic growth in various markets.
Denelle Dixon, Chief Executive of the Stellar Development Foundation, says the collaboration will bring stable digital payments to people and businesses in regions that need better financial access. She views the move as a step toward making stablecoins a standard part of the global financial system.
Image: (Source: CoinStats)
Connecting Digital Money with Real-World Use
This development is part of PayPal’s broader strategy to connect digital currency with day-to-day financial needs. With Stellar’s network already supporting payments at scale, PYUSD will be able to reach users in both developed and emerging markets.
The Stellar blockchain is built to support financial products and services at scale while keeping fees low. Its design includes smart contract functionality and infrastructure that allows systems to grow with increased demand. These features make it a strong match for PYUSD’s goal of becoming a trusted and widely used digital currency.
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Adding PYUSD to Stellar will give users more ways to interact with the stablecoin across different platforms. People will be able to use it for shopping, transferring money to friends or family, or managing a business—all in one ecosystem. This aims to make digital money feel more practical and useful in daily financial life.
