PayPal Expands PYUSD Stablecoin to Stellar Blockchain

2 mins mins

Key Points:

PayPal plans to integrate its stablecoin on the Stellar blockchain.
This move is expected to reduce transaction costs and increase speed.
Integration is pending regulatory approval.

PayPal, under CEO Dan Schulman, announced on June 26, 2025, its plans to integrate its stablecoin, PayPal USD (PYUSD), on the Stellar blockchain.

This integration, pending regulatory approval, is expected to reduce transaction costs and enhance speed, significantly impacting cross-border payments and small business financing.

Industry Reactions and Regulatory Hurdles

PayPal’s recent decision to expand its PYUSD stablecoin to the Stellar blockchain signals its commitment to enhancing stablecoin utility. The integration, led by CEO Dan Schulman and VP May Zabaneh, aims to reduce transaction costs and increase processing speed. The strategy is aligned with leveraging stablecoins for real-world payment applications.

The immediate impact of this move is twofold: cost-efficiency and elevated transaction throughput. By tapping into Stellar’s infrastructure, PayPal aims to streamline cross-border transactions and bolster small business operations through its “PayFi” model, addressing liquidity hurdles for merchants.

For years, stablecoins have been deemed crypto’s ‘killer app’ by combining the power of the blockchain with the stability of fiat currency. 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.

PayPal’s integration with Stellar sparked diverse reactions across the industry. May Zabaneh highlighted the strategic importance, while Stellar’s community expressed optimism about increased scalability. The collaboration with fintech players like Fiserv underscores institutional backing for this stablecoin expansion.

Market Impact and Future Outlook

Did you know? The Stellar network has been recognized for its potential to facilitate cross-border transactions quickly and at low cost, making it an ideal partner for stablecoin integrations.

As of the announcement, the market has reacted positively, with PayPal’s stock seeing a slight uptick, reflecting investor confidence in the integration’s potential benefits.

paypal-usd-daily-chart-4 — PayPal USD(PYUSD), daily chart, screenshot on CoinMarketCap at 20:19 UTC on June 26, 2025. *Source: CoinMarketCap*

Analysts predict that this move could set a precedent for other financial institutions looking to leverage blockchain technology for improved transaction efficiency.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.