Stablecoin launch on Stellar blockchain under consideration by PayPal, with PYUSD's market cap nearing a billion dollars.
PayPal's PYUSD Stablecoin Awaits Regulatory Approval on Stellar Blockchain
PayPal, in partnership with Paxos, has announced plans to launch its stablecoin, PYUSD, on the Stellar blockchain. However, the regulatory approval process for this integration is still pending from the New York Department of Financial Services (NYDFS).
The application for approval was submitted by PayPal in late June 2025, but as of June 23, the NYDFS has yet to grant its approval [1][2][3]. This regulatory approval is crucial for the integration of PYUSD on Stellar, and its absence has significant market implications.
The regulatory approach for PYUSD on the Stellar blockchain is different from that of other stablecoin issuers like Circle. This is due to PayPal's partnership with Paxos, a New York regulated trust company, which requires regulatory approval for each new blockchain [6].
Stellar is an attractive choice for the expansion of PYUSD due to its existing infrastructure for cross-border payments. Moreover, Stellar supports certain financing and business loan applications, which could benefit users [7]. PayPal has highlighted that the use of Stellar could potentially benefit users in this regard.
The crypto community is optimistic about the potential launch of PYUSD on Stellar, reflected in increased trading activity of Stellar (XLM). However, the launch depends on the approval from the NYDFS [2][4].
Market analysts view the regulatory approval as a critical hurdle, with potential major impacts on Stellar’s market price [5]. As of now, the PYUSD stablecoin is available on the Ethereum and Solana blockchains, with a market capitalization of nearly a billion dollars. One of the wallets holding PYUSD stablecoins has a balance of over $300 million.
NYDFS has only approved Ethereum and Solana to date for trust-based stablecoins, with Solana added at the end of 2023. If approved, the integration of PYUSD on Stellar could open up new use cases outside the PayPal wallet, including DeFi and other applications.
References: 1. PayPal to Launch Stablecoin PYUSD on Stellar 2. PayPal's Stellar Stablecoin Awaits Regulatory Approval 3. PayPal's Stablecoin on Stellar: Regulatory Approval Still Pending 4. Stellar Surges Amid PayPal's Stablecoin Launch Rumors 5. Market Analysts Weigh In on PayPal's Stablecoin Launch on Stellar 6. PayPal's Regulatory Approach and Partnership with Paxos Shape Stablecoin Expansion 7. Stellar's Support for Financing and Business Loan Applications Could Benefit Users
- Regulatory approval from the New York Department of Financial Services (NYDFS) is crucial for the integration of PayPal's stablecoin, PYUSD, on the Stellar blockchain, as the pending process has significant market implications.
- The application for approval was submitted by PayPal in late June 2025, but as of June 23, the NYDFS has yet to grant its approval, unlike Ethereum and Solana, which have already received approval for trust-based stablecoins.
- The regulatory approach for PYUSD on the Stellar blockchain is different from that of other stablecoin issuers, due to PayPal's partnership with Paxos, a New York regulated trust company, which requires regulatory approval for each new blockchain.
