PayPal’s Stablecoin Is Ready To Move To Stellar Network
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PayPal recently announced that it aims to enhance the utility of its stablecoin by integrating it on the third major blockchain — the high-speed, low-cost Stellar Network.
So far, PayPal’s PYUSD stablecoin has already gone live on two major blockchains, Ethereum and Solana. Next, PayPal hopes to see it go live on Stellar, but for now, it is still awaiting regulatory approval from the New York State Department of Financial Services.
Benefits of Launching PYUSD on Stellar
The payments giant has listed several benefits that its stablecoin could gain by joining Stellar, including fast and affordable real-world payments, as well as various use cases in areas such as commerce, remittances, and micro-financing.
In addition, the move would provide the stablecoin with access to Stellar’s massive network of on- and off-ramps. This would provide even more access through digital wallets, in addition to connecting it to various other cash networks and local payment systems.
May Zabaneh, PayPal’s VP for blockchain, cryptocurrency, and digital currency group, stated that the company views cross-border payments as a key area. This is where digital currencies can provide real-world value, which is why working with Stellar could help advance the use of this technology. Not to mention all the benefits for the users, including low-cost, fast international payments.
Additionally, PayPal is also touting enhanced liquidity and financing opportunities that could emerge through Payment Financing, or PayFi. The company explained that many small to medium-sized businesses (SMBs) face delayed receivables or pre-funding requirements, and this new sector would enable them to access additional sources of real-time working capital, which would be disbursed in PayPal’s stablecoin.
PayPal’s Stablecoin Passes The SEC’s Check
Commenting further, Zabaneh stated that stablecoins are one of the most practical tools in the cryptocurrency industry, as they combine the speed offered by blockchain with the price stability of fiat currencies. The US Securities and Exchange Commission (SEC) already concluded its investigation of PYUSD earlier this year, in April, with no enforcement actions taken.
The SEC informed the company that it was closing the inquiry, which had begun in November 2023, with a subpoena issued against it. At the time, the regulator requested documents related to the stablecoin’s launch and operations, and PayPal complied. The fact that the SEC did not launch any legal action was taken as confirmation that there were no issues identified with the token.
