PayPal Holdings’ (NASDAQ:PYPL) dollar-backed stablecoin, PayPal USD (PYUSD-USD), moved a step closer to launching on the Stellar (XLM-USD) blockchain after the New York State Department of Financial Services raised no objection to the plan.
Paxos Trust Company “has received a non-objection update from the New York State Department of Financial Services for PYUSD to be issued on Stellar. That’s one step closer to bringing PYUSD to Stellar this year,” Stellar said in a recent post on X.
By potentially expanding to Stellar, PYUSD (PYUSD-USD) users would be given access to the network’s on and off ramps, providing additional access through digital wallets, and connected to local payment systems and cash networks.
The non-objection update came even after Paxos was fined by the NYDFS for anti-money laundering deficiencies and compliance failures tied to its previous alliance with crypto exchange Binance.
Paxos received the update on Aug. 18.