PayPal will launch PYUSD on Stellar to improve cross-border remittances and payment financing services.
The integration supports small businesses with real-time capital disbursement via Stellar's low-cost network.
NYDFS has approved the integration, and final product review is underway before PYUSD goes live on Stellar.
PayPal has announced the association of its U.S. dollar-pegged stablecoin, PYUSD, with the Stellar blockchain network. The action celebrates a strategic growth beyond ETH and SOL, the two networks where the stablecoin is already available. According to both companies, this development aims to support quicker cross-border transactions and help small businesses manage slowed payments.
The announcement comes after the New York Department of Financial Services (NYDFS) completed its review of the integration. The regulatory clearance permits PayPal to begin operations on Stellar following final checks. This development introduces PYUSD to a blockchain known for its quick processing speeds and low fees.
Stellar's infrastructure is expected to support real-time settlement of payments, especially in global remittance channels. This allows businesses and individual users to complete transactions more efficiently than with traditional banking systems. According to PayPal, this integration aligns with its broader push to deliver faster, cheaper alternatives for international money transfers.
Payment Financing Takes Center Stage
In addition to remittances, PayPal plans to use Stellar to support "payment financing," also known as PayFi. This financial model enables small and medium-sized businesses to access short-term capital when facing delayed receivables or pre-funding challenges. PYUSD will be disbursed instantly on Stellar to cover supplier payments, inventory costs, or other operational needs.
PayFi serves as a bridge for businesses that experience working capital shortfalls, providing liquidity when cash flow becomes uncertain. The stablecoin model ensures that these funds retain their value during the transaction process. By leveraging Stellar, PayPal intends to ensure quick delivery and settlement of funds, removing delays that often impact small businesses.
Broader Shift Toward Blockchain-Based Finance
Stablecoins like PYUSD have seen growing adoption due to their ability to combine blockchain utility with fiat stability. Originally used for crypto trading, these tokens are now being applied to broader financial services. With the inclusion of Stellar, PYUSD will now operate across three networks, Ethereum, Solana, and Stellar giving users more flexibility.
Stellar’s blockchain provides a cost-effective solution for users operating in regions where access to banking services remains limited. Its low transaction costs make it suitable for handling high-frequency micro-transactions or business payments. PayPal confirmed that the Stellar integration will not affect operations on Ethereum and Solana.
According to PayPal’s vice president of digital assets, this move aligns with long-standing goals to improve global payments. The integration is expected to go live once NYDFS completes its final product review.
