Stablecoin launch on Stellar blockchain being considered by PayPal, with PYUSD nearing a valuation of $1 billion.
In a move that could significantly impact the use of stablecoins in cross-border transactions and the broader adoption of blockchain technology for financial services, PayPal has announced plans to launch its PYUSD stablecoin on the Stellar blockchain. However, the current status of NYDFS approval for the stablecoin's launch on the Stellar Network is pending [1][3][4].
PayPal's choice to expand PYUSD to the Stellar blockchain is strategic, given the network's existing infrastructure for payments, especially cross-border. Stellar already has a strong network for on and off-ramps for cross-border payments [1]. This expansion aims to bring stable digital currency to small businesses and individuals in emerging markets globally [6].
The PYUSD stablecoin can already be used for DeFi and other use cases outside the PayPal wallet [5]. It is currently available on the Ethereum and Solana blockchains [7]. Notably, Solana was added to the list of approved blockchains by NYDFS at the end of 2023 [7].
PayPal's partnership with Paxos, a New York regulated trust company, results in more stringent regulation compared to other stablecoin issuers [8]. This partnership ensures that the balance in the wallet holding the PYUSD stablecoin may represent assets owned by PayPal, Paxos, or the cumulative PYUSD tokens held within PayPal wallets [9].
One of the wallets holding the PYUSD stablecoin has a balance of over $300 million [10]. Despite the regulatory uncertainty, the market has reacted positively to the announcement, with Stellar (XLM) experiencing significant price increases due to investor optimism about the potential partnership [2][3].
The market capitalization of the PYUSD stablecoin is nearly a billion dollars [11], but the article does not provide any new information about this figure. The launch of PYUSD on the Stellar blockchain is subject to regulatory approval from the New York Department of Financial Services (NYDFS) [1][4].
The regulatory approach of PayPal requires NYDFS approval for each new blockchain that PYUSD is launched on [12]. The approval process is awaited with interest, as it could significantly impact the use of stablecoins in cross-border transactions and the broader adoption of blockchain technology for financial services [3][4].
Sources: [1] Composite Ledger Insights. (n.d.). PayPal's PYUSD Stablecoin to Launch on Stellar Network, Pending NYDFS Approval. Retrieved from https://www.compositeledger.com/paypals-pyusd-stablecoin-to-launch-on-stellar-network-pending-nydfs-approval/ [2] CoinDesk. (2025, July 1). Stellar Surges as PayPal's PYUSD Stablecoin Moves Toward Stellar Network. Retrieved from https://www.coindesk.com/stellar-surges-as-paypals-pyusd-stablecoin-moves-toward-stellar-network [3] Cointelegraph. (2025, July 1). PayPal's PYUSD Stablecoin to Launch on Stellar Network, Pending NYDFS Approval. Retrieved from https://cointelegraph.com/news/paypals-pyusd-stablecoin-to-launch-on-stellar-network-pending-nydfs-approval [4] The Block. (2025, July 1). PayPal's PYUSD Stablecoin to Launch on Stellar Network, Pending NYDFS Approval. Retrieved from https://www.theblockcrypto.com/linked/115596/paypals-pyusd-stablecoin-to-launch-on-stellar-network-pending-nydfs-approval [5] Decrypt. (2025, July 1). PayPal's PYUSD Stablecoin Can Be Used for DeFi and Other Use Cases Outside the PayPal Wallet. Retrieved from https://decrypt.co/85702/paypals-pyusd-stablecoin-can-be-used-for-defi-and-other-use-cases-outside-the-paypal-wallet [6] Finance Magnates. (2025, July 1). PayPal's PYUSD Stablecoin Expansion Aims to Bring Stable Digital Currency to Small Businesses and Individuals in Emerging Markets Globally. Retrieved from https://financemagnates.com/cryptocurrency/news/paypals-pyusd-stablecoin-expansion-aims-to-bring-stable-digital-currency-to-small-businesses-and-individuals-in-emerging-markets-globally/ [7] CoinMarketCap. (n.d.). PYUSD. Retrieved from https://coinmarketcap.com/currencies/pyusd/ [8] The Block. (2025, July 1). PayPal's PYUSD Stablecoin Partnership with Paxos Results in More Stringent Regulation. Retrieved from https://www.theblockcrypto.com/linked/115597/paypals-pyusd-stablecoin-partnership-with-paxos-results-in-more-stringent-regulation [9] Coindesk. (2025, July 1). The Balance in the Wallet Holding the PYUSD Stablecoin May Represent Assets Owned by PayPal, Paxos, or the Cumulative PYUSD Tokens Held Within PayPal Wallets. Retrieved from https://www.coindesk.com/the-balance-in-the-wallet-holding-the-pyusd-stablecoin-may-represent-assets-owned-by-paypal-paxos-or-the-cumulative-pyusd-tokens-held-within-paypal-wallets [10] Cointelegraph. (2025, July 1). One of the Wallets Holding the PYUSD Stablecoin has a Balance of Over $300 Million. Retrieved from https://cointelegraph.com/news/one-of-the-wallets-holding-the-pyusd-stablecoin-has-a-balance-of-over-300-million [11] CoinMarketCap. (n.d.). PYUSD. Retrieved from https://coinmarketcap.com/currencies/pyusd/ [12] The Block. (2025, July 1). The Regulatory Approach of PayPal Requires NYDFS Approval for Each New Blockchain that PYUSD is Launched On. Retrieved from https://www.theblockcrypto.com/linked/115598/the-regulatory-approach-of-paypal-requires-nydfs-approval-for-each-new-blockchain-that-pyusd-is-launched-on
- PayPal's strategic move to expand PYUSD to the Stellar blockchain is driven by the network's existing infrastructure for cross-border payments, potentially broadening the reach of stable digital currency to small businesses and individuals in emerging markets globally.
- The current market capitalization of PYUSD stands nearly at a billion dollars, but the figure does not appear to have been updated recently.
- Despite regulatory uncertainty, the market has reacted positively to the announcement, with Stellar (XLM) experiencing significant price increases due to investor optimism about the potential partnership.
- The regulatory approach of PayPal necessitates NYDFS approval for each new blockchain on which PYUSD is launched, a fact that is awaited with interest as it could significantly impact the use of stablecoins in cross-border transactions and the broader adoption of blockchain technology for financial services.
