- A jaw-dropping collaboration between the Stellar Network and PayPal could see PYUSD integrated on the decentralised, public blockchain.
- PayPal’s stablecoin is expected to reap a wide array of benefits, including capitalising on the speed and low transaction cost of the Stellar Network.
PayPal has announced a strategic move to integrate its stablecoin PayPal USD (PYUSD) to the Stellar Network to leverage its “speed, low transaction cost, and the ease of integration”. However, this is subject to approval by the New York State Department of Financial Services (NYDFS).
The Details
According to the report reviewed by CNF, this groundbreaking move was motivated by the need for PayPal to enhance its utility for “real-world payment, commerce, and micro financing” while ensuring that users have a reliable option to Solana (SOL) and Ethereum (ETH).
Already, the stablecoin is approaching a market valuation of $1 billion with its distribution recording a growth of more than 170% on Solana, as indicated in our recent news brief.
Commenting on this, Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal May Zabaneh, highlighted that this integration could significantly increase users’ benefits and advance its existing use cases.
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.
Meanwhile, the official introduction of PYUSD has been disclosed to come with several benefits, including the enhancement of fast and affordable cross-border payments. According to a post published by Stellar Network, PayPal would also access an expanded financial service while users witness massive improvement in their daily payment options and financing solutions.
Apart from these, PYUSD is also expected to enhance liquidity and financing opportunities via what they termed as the Payment Financing (PayFi). Businesses could do away with delays by accessing real-time working capital.
Technically, experts explain that this capital could be used in the core business operations, ranging from paying suppliers to managing inventory. Currently, Stellar has shown solid growth with a Total Value Locked (TVL) of $98.99 million, as mentioned in our recent news story.
Stellar to Transform PYUSD and the Entire Stablecoin Sector
According to the CEO of Stellar Development Foundation, Denelle Dixon, this collaboration would be able to redefine the stablecoin ecosystem by transforming it into a practical financial tool. With this, businesses and individuals would be able to access them across the globe. As we covered in our latest report, PYUSD has already expanded to 20 million merchants as of February this year.
Stellar is the network for fast, low-cost, and trusted global payments at scale. By bringing PYUSD to 170+ countries, we’re transforming stablecoins into practical financial tools that millions of everyday users and merchants can actually use.
PYUSD’s progress over the past few months has been an interesting one. As outlined in our recent blog post, a 24/7 conversion between OUSG and PYUSD has been allowed on the Ondo platform. Additionally, PayPal has launched an annual yield of 3.7% on the stablecoin to boost its everyday use. As we discussed earlier, the reward is expected to be available to both PayPal and Venmo users in the US.
