PayPal has expanded its stablecoin PayPal USD (PYUSD) to the Stellar blockchain, leveraging Stellar’s fast transaction speeds, low fees, and global reach to enhance cross-border payments and financial inclusion. This strategic move could challenge the XRP Ledger’s established position in blockchain-based payments, pending regulatory approvals.
The integration intensifies competition with the XRP Ledger, which currently hosts significant stablecoin deployments including StraitsX’s Singapore dollar-backed XSGD. PYUSD’s expansion aims to improve real-world utility by facilitating efficient cross-border transactions and introducing a Payment Financing (PayFi) model tailored for small and medium-sized enterprises.
Regulatory compliance remains central to the deployment, with PYUSD issued by Paxos Trust Company under the oversight of the New York Department of Financial Services. This mirrors the regulatory framework supporting XSGD in Singapore, emphasizing adherence to financial standards.
Industry leaders highlight the collaboration’s potential to increase stablecoin accessibility for merchants and small businesses worldwide, positioning PYUSD on Stellar as a catalyst for broader adoption of blockchain payment solutions.