PayPal is preparing to make its stablecoin, PayPal USD (PYUSD), available on the Stellar blockchain, pending regulatory approval from the New York State Department of Financial Services (NYDFS). Stellar is a blockchain network designed for fast and low-cost transactions.
The potential integration would allow PYUSD to operate on Stellar alongside its existing availability on Ethereum and Solana. Stellar’s infrastructure offers advantages such as low transaction fees, fast processing times, and built-in compatibility with digital wallets and local payment systems.
The move could benefit small and medium-sized businesses by providing new financing options through a model known as Payment Financing (PayFi). Businesses could receive working capital in PYUSD to manage operations such as supplier payments or inventory, with real-time settlement enabled by Stellar.
Stellar’s infrastructure is already used for micro-financing and business loans, and the addition of PYUSD could expand these services further. By leveraging Stellar, PayPal aims to improve how users send, receive, and manage money across borders, with increased transparency and faster settlement times.
The expansion would mark a step toward broader use of stablecoins in digital payments and financial services.
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