PayPal plans to make its stablecoin available on Stellar blockchain

PayPal Holdings (NASDAQ:PYPL) is planning to make its dollar-pegged stablecoin, PayPal USD (PYUSD-USD), available on the Stellar (XLM-USD) blockchain, leveraging its speed and low transaction costs for use cases like real-world payments, commerce and micro-financing, it said on Wednesday.

By potentially expanding to Stellar, PYUSD 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.

“For years, stablecoins have been deemed crypto’s ‘killer app’ by combining the power of the blockchain with the stability of fiat currency,” said May Zabaneh, vice president of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal. “As we see cross border payments being a key area where digital currencies can provide real world value, working with Stellar will help advance the use of this technology and provide benefits for all users.”

Beyond the consumer, PYUSD on Stellar can also allow small and medium-sized businesses that face delayed receivables or pre-funding requirements would be able to access new sources of real-time working capital, disbursed in PYUSD.

Issued by Paxos Trust Company, PYUSD can be bought or sold through PayPal (NASDAQ:PYPL) and Venmo at a rate of $1.00 per token. Reserves for the stablecoin are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents.