PayPal has revealed plans to make its USD stablecoin, PYUSD, available on the Stellar network, pending regulatory approval from the New York State Department of Financial Services.  

The deployment is intended to capitalise on the network’s attributes, including “fast, low-cost payments” to facilitate payments and financial services, the payments firm said in a statement. 

The Stellar network is known for its “speed, low transaction costs”, which could be leveraged by PYUSD to provide an alternative to networks such as Ethereum and Solana.  

The integration is expected to enhance PYUSD’s utility for various financial operations, including cross-border payments and micro-financing. 

PYUSD users would gain access to Stellar’s network of entry and exit points, aiming to improve the usability of the stablecoin for everyday financial transactions.  

This includes services from payments to remittances and merchant services. 

Additionally, PYUSD on Stellar could offer new liquidity and financing opportunities through Payment Financing or ‘PayFi’.  

This allows for instant settlement on the Stellar network, which businesses could use for operational needs such as paying suppliers or managing inventory. 

Blockchain, Cryptocurrency, and Digital Currency Group vice president May Zabaneh said: “As we see cross border payments being a key area where digital currencies can provide real world value, working with Stellar will help advance the use of this technology and provide benefits for all users.”  

Stellar Development Foundation CEO Denelle Dixon stated: “By bringing PYUSD to 170+ countries, we’re transforming stablecoins into practical financial tools that millions of everyday users and merchants can actually use. Together, we are bringing stable digital currency to small businesses and individuals in emerging markets all over the globe.” 

This announcement follows a recent partnership between Mastercard and PayPal, which aims to expand payment choices for users at checkout.