PayPal’s native stablecoin, PayPal USD, will soon be available on the Stellar blockchain, pending regulatory approval. 

The payment giant said Wednesday that its PYUSD token will run on the crypto network behind the 19th biggest digital coin by market cap, XLM, if approved by the New York State Department of Financial Services.

PayPal launched PYUSD in 2023 with hopes to break into the crowded stablecoin market. Paxos Trust Co. issues the digital token, which is already available on Ethereum and Solana blockchains. 

Stellar is a crypto network focused on making cross-border payments faster and cheaper.

PayPal’s Vice President of Blockchain and Cryptocurrency, May Zabaneh, said in a statement: “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,” she continued, “working with Stellar will help advance the use of this technology and provide benefits for all users.”

PayPal added that PYUSD on Stellar would enable a “seamless flow of value across global markets.”

Stablecoins are digital tokens backed by a non-volatile asset—usually U.S. dollars. PYUSD, the 106th biggest cryptocurrency with a market cap of under $1 billion, is backed by cash equivalents and short-term treasuries.

The stablecoin market is huge, with Tether’s USDT and Circle’s USDC products having the lion’s share of the industry. The tokens are the third- and seventh-largest cryptocurrencies in the space, respectively, and two of the most traded tokens. 

Stablecoins were originally used primarily by traders to enter and exit crypto transactions without having to access traditional banking rails. 

But the cryptocurrencies have gained traction as high-profile businesses and banks are interested in launching stablecoins to streamline payments. 

Edited by Andrew Hayward