PayPal’s Stablecoin Is Coming to the Stellar Blockchain

PayPal has announced plans to launch its PayPal USD (PYUSD) stablecoin on the Stellar blockchain. The move comes as PYUSD’s market capitalization returns above the $1 billion mark.Pending final regulatory approval from the New York State Department of Financial Services (NYDFS), PayPal’s PYUSD will soon be available on the Stellar network. The blockchain, known for its speed, low transaction fees, and utility in real-world finance, represents a strategic complement to Ethereum and Solana, blockchains where PYUSD already operates.PYUSD is coming to @StellarOrg, reaching a broader group of developers and unlocking new opportunities for the stablecoin. More blockchains, greater access – and we’re not stopping now. pic.twitter.com/DDfpb9JBzMBy integrating with Stellar, PayPal aims to bolster the stablecoin’s role in cross-border payments and business financing. The network’s vast infrastructure of on and off ramps will enable users to access PYUSD through digital wallets connected to local payment systems, bridging digital and physical financial ecosystems.“Working with Stellar will help advance the use of this technology and provide benefits for all users,” said May Zabaneh, Vice President of PayPal’s Blockchain, Cryptocurrency, and Digital Currency Group. Zabaneh emphasized the importance of stablecoins in facilitating real-world applications, particularly in global payments.A central focus of the Stellar expansion is PYUSD’s role in “PayFi” or payment financing. The initiative targets small and medium-sized enterprises (SMEs) that face challenges with delayed receivables or pre-funding requirements. Through PYUSD on Stellar, these businesses will be able to access real-time working capital, enabling faster supplier payments, better inventory management, and smoother operations with instant settlement.The Stellar Development Foundation highlighted that bringing PYUSD to over 170 countries enhances its mission of delivering trusted global payments at scale. “We are bringing stable digital currency to small businesses and individuals in emerging markets all over the globe,” said Denelle Dixon, CEO of the foundation.PYUSD’s expansion comes as the stablecoin regains momentum in the market. After declining to a low of around $498 million in early 2025, PYUSD’s circulating supply has rebounded to its previous peak of $1.01 billion, initially reached in August 2024. This growth suggests a more sustainable trajectory compared to the inflated demand observed during the Solana DeFi incentives boom last summer.PayPal’s PYUSD hits $1 billion in outstanding supply ~2 years from launch.

How will it take to scale from $1 to $10 billion? pic.twitter.com/mYlmo4cGLrThe resurgence of PYUSD aligns with broader trends in the stablecoin sector, which continues to solidify its role as a core infrastructure layer in the cryptocurrency ecosystem. With PayPal’s backing and expanding multi-chain support, PYUSD is positioning itself as a key player in the evolving digital payments landscape.The Stellar price prediction algorithm on CoinCodex is currently bullish on XLM, expecting the cryptocurrency to steadily appreciate for the remainder of 2025 before peaking at roughly $0.41 in December. The $0.41 target is roughly 46% above the current price of XLM. After a consolidation phase, XLM is then expected to produce another peak at around $0.60 in mid-2026.Get Started on eToroeToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.