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NEW YORK - PayPal (PYPL), a prominent player in the financial services industry with a market capitalization of $72.7 billion, announced plans to make its PayPal USD (PYUSD) stablecoin available on the Stellar blockchain network, pending regulatory approval from the New York State Department of Financial Services. According to InvestingPro data, the company maintains a strong financial health score, supporting its continued expansion in digital payment innovations.
The proposed expansion would add Stellar as a third blockchain option for PYUSD alongside Ethereum and Solana. According to the company’s press release statement, the integration aims to leverage Stellar’s infrastructure for faster and lower-cost transactions. This move aligns with PayPal’s robust business model, which generated $31.9 billion in revenue over the last twelve months.
"Working with Stellar will help advance the use of this technology and provide benefits for all users," said May Zabaneh, Vice President of PayPal’s Blockchain, Cryptocurrency, and Digital Currency Group.
The Stellar network operates in over 170 countries and is designed specifically for payment applications. If approved, the integration would connect PYUSD to Stellar’s network of digital wallets, local payment systems, and cash networks.
Denelle Dixon, CEO of Stellar Development Foundation, said the collaboration would transform stablecoins into "practical financial tools that millions of everyday users and merchants can actually use."
The companies indicated the expansion could support use cases including cross-border payments, remittances, and financing solutions for small businesses.
PYUSD is issued by Paxos Trust Company and is designed to maintain a value of one U.S. dollar per token. The stablecoin’s reserves are backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents.
The announcement notes that the expansion requires regulatory approval, which has not yet been granted as of Wednesday. PayPal also included disclosures about risks associated with digital assets, including network and custody risks, regulatory uncertainty, and the lack of FDIC or SIPC protection. For investors seeking deeper insights into PayPal’s risk profile and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its suite of professional investment tools covering 1,400+ US stocks.
In other recent news, PayPal Holdings, Inc. has made several strategic moves to enhance its offerings and partnerships. The company announced an expansion of its equity incentive plan, increasing the number of shares available for issuance by 15 million, following shareholder approval at the Annual Meeting. This move is aimed at providing PayPal with the flexibility to incentivize and retain employees through stock-based compensation. Additionally, PayPal has partnered with Selfbook to streamline hotel bookings by integrating PayPal and Venmo as payment options, including the Buy Now, Pay Later service. This partnership aims to enhance the booking experience by utilizing AI technology, offering exclusive rates, and reducing friction for customers.
In another development, Venmo, a subsidiary of PayPal, has expanded its commerce capabilities by introducing new cash back offers for Venmo Debit Mastercard users. These users can now earn up to 15% cash back from select brands, enhancing the platform’s appeal for a broader range of purchases. Furthermore, PayPal has introduced a new physical credit card to boost its presence in physical stores. Issued by Synchrony Financial, this card offers a six-month promotional period with no-interest financing for qualifying travel purchases. These initiatives reflect PayPal’s ongoing efforts to diversify its financial products and extend its reach in the payments landscape.
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