PayPal’s US dollar stablecoin (PYUSD) debuted on the Stellar blockchain, unlocking faster, cheaper payments for users.
With integrations across PayPal, Venmo, and the Stellar ecosystem, the move raises questions about what this means for Stellar’s native token, XLM.
Stellar Taps PayPal USD, Yield Stablecoins for Payment Edge
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PYUSD went live on Stellar on Thursday, advertising low-fee transfers, approximately five seconds finality, and anchoring for fiat ramps.
The announcement also revealed Stellar Asset Contract-compatible contracts for payments.
The Stellar Development Foundation echoed the sentiment, lauding it as a means to transform everyday payments. Community reactions have been equally enthusiastic.
“Stellar is fast, cheap, and secure. This is one of biggest partnerships we’ve been waiting for. Super, super exciting!” one user remarked.
Meanwhile, the integration may be more than a headline for the Stellar network. It validates its long-running mission to position itself as the payments-focused blockchain.
The timing aligns with Stellar’s Protocol 23 upgrade, “Whisk,” which went live earlier in the month.
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Whisk introduced parallel smart contract execution and transaction throughput optimized toward 5,000 TPS. This marked one of the most significant technical improvements in Stellar’s history.
By reducing latency and costs while boosting capacity, Whisk sets the stage for PYUSD to scale efficiently across Stellar’s network of wallets, anchors, and payment partners.
Developers also benefit from unified event formatting, which makes it easier to build applications that combine traditional Stellar operations with smart contracts.
Ondo Finance Adds Yield to Stablecoins
Still, stablecoin developments on Stellar in September go beyond the launch of PYUSD. Ondo Finance recently introduced USDY, a yield-bearing stablecoin backed by US Treasuries and bank deposits.
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Unlike USDC or PYUSD, USDY automatically accrues daily yield while preserving liquidity.
“Stablecoins unlocked global access to the US dollar. With USDY, we’re taking the next step by bringing US Treasuries on-chain in a form that combines stability, liquidity, and yield,” said Ian De Bode, Chief Strategy Officer at Ondo Finance.
According to Denelle Dixon, CEO of the Stellar Development Foundation, pairing Stellar’s reach with yield-bearing assets displays what is possible on-chain.
USDY is already integrated into Stellar-based apps like LOBSTR, Aquarius, Meru, Soroswap, and Decaf Wallet.
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XLM Price Outlook
Despite the buzz, XLM slipped almost 1.3% on launch day, and is down by almost 2% in the last 24 hours. As of this writing, the token traded for $0.39.
It points to investor caution, given that short-term price movements often depend on liquidity and overall risk sentiment.
Partnerships and technical upgrades could provide long-term bullish fundamentals.
Still, Stellar now hosts a US fintech giant’s stablecoin and the first yield-bearing stablecoin backed by Treasuries. Combined with its Whisk upgrade, the ecosystem has rarely looked stronger.
Source: https://beincrypto.com/paypal-usd-stellar-xlm-price/