PayPal, a giant in the payment sector, is continuing to solidify its position in the digital asset space by expanding PayPal USD (PYUSD) to the Stellar blockchain. This strategic move, pending approval from the New York State Department of Financial Services, promises to bring significant improvements to cross-border payment processes.
PYUSD, launched on #Paypal in 2023 to enter the highly competitive stablecoin market, is now available on the Ethereum and Solana blockchains. The addition of Stellar, a crypto network known for its quick cross-border payment processing and low costs, highlights PayPal's vision of optimizing global value flow.
Ms. May Zabaneh, Vice President of PayPal's Blockchain and Cryptocurrency Division, emphasized: "For years, stablecoins have been seen as the 'killer application' of crypto, combining the power of blockchain with the stability of fiat currency. We see cross-border payments as a key area where digital currencies can provide practical value. Partnering with #stellar will help drive the adoption of this technology and benefit all users."
PYUSD, issued by Paxos Trust Co. and backed by cash and short-term treasury bonds, is the 106th largest stablecoin with a market capitalization of under 1 billion USD. Although the stablecoin market is dominated by giants like Tether's USDT and $USDC from Circle (the third and seventh largest cryptocurrencies respectively), PayPal's continuous expansion into various blockchains demonstrates their effort to diversify access and application of #PYUSD .
Initially, stablecoins were mainly used by traders to enter and exit crypto transactions without going through traditional banking systems. However, they are becoming increasingly popular as large businesses and banks show interest in launching stablecoins to streamline payment processes. PayPal's expansion of PYUSD to Stellar is a significant milestone, not only affirming the stablecoin's position in digital payments but also opening up new possibilities for seamless value transfer in the global market.