On June 11, 2025, PayPal announced plans to integrate its native stablecoin, PayPal USD (PYUSD), with the Stellar blockchain, pending regulatory approval from the New York State Department of Financial Services (Source: PayPal).
Launched in 2023, PYUSD is currently available on Ethereum and Solana blockchains and is issued by Paxos Trust Co. The move to Stellar aims to leverage the network's focus on faster and cheaper cross-border payments.
According to PayPal's Vice President of Blockchain and Cryptocurrency, May Zabaneh, this expansion will help advance the use of stablecoins and provide benefits for all users. PYUSD, the 106th largest cryptocurrency with a market cap under $1 billion, is backed by cash equivalents and short-term treasuries.
The integration with Stellar is expected to enable a seamless flow of value across global markets. The stablecoin market is dominated by Tether's USDT and Circle's USDC, which are among the most traded tokens.
Stablecoins are digital tokens backed by a non-volatile asset, typically U.S. dollars. They are increasingly used by businesses and banks to streamline payments.