PayPal CEO Alex Chriss recently recognized Stellar's (XLM) growing role in enhancing cross-border payments, coinciding with PayPal's expanding crypto collaborations, especially with Coinbase. The CEO highlighted Stellar's blockchain capabilities, including its high-speed, low-cost transactions with fees as low as 0.00001 XLM and settlement times under five seconds, making it an efficient solution for international money transfers.
PayPal USD (PYUSD), PayPal's dollar-pegged stablecoin currently supported on Ethereum and Solana, is set to launch on the Stellar network pending regulatory approval from the New York State Department of Financial Services (NYDFS). This expansion will unlock new opportunities for PYUSD by leveraging Stellar's extensive network of on- and off-ramps, digital wallets, and local payment systems connections, significantly broadening use cases such as everyday payments, remittances, and merchant services.
The collaboration between PayPal and Coinbase aims to accelerate the adoption, distribution, and utility of PYUSD within the crypto ecosystem. Additionally, the Stellar Development Foundation recently marked the third anniversary of its partnership with MoneyGram, which has facilitated nearly $30 million in transactions, reinforcing Stellar’s strong position in global payments.
These developments reflect a broader trend of traditional financial institutions embracing blockchain technology to drive digital currency adoption and bridge the gap between conventional finance and decentralized finance applications.