PayPal's stablecoin nears Stellar debut after NYDFS non-objection update

PayPal USD (PYUSD) is progressing towards its launch on the Stellar blockchain after receiving a non-objection from the New York State Department of Financial Services (NYDFS).

Paxos Trust Company has announced that this update allows for enhanced integration of PYUSD with Stellar, improving digital wallet efficiency and connectivity with payment systems.

This development occurs despite recent regulatory challenges faced by Paxos, including a fine from the NYDFS for anti-money laundering and compliance issues.

Recommendation Rating: Promising Advancement for PayPal USD

PayPal Holdings' dollar-backed stablecoin, known as PayPal USD (PYUSD-USD), has taken a significant step towards its launch on the Stellar (XLM-USD) blockchain. This progress follows the New York State Department of Financial Services (NYDFS) issuing a non-objection regarding the plan.

According to Stellar's recent announcement on social media platform X, Paxos Trust Company has received this non-objection update from the NYDFS, indicating that PYUSD is one step closer to being launched on the Stellar network within this year.

With this integration into Stellar, users of PYUSD would benefit from enhanced access to the network’s on and off ramps. This would facilitate more efficient use of digital wallets and improve connectivity with local payment systems and cash networks.

It is noteworthy that this update comes in the wake of Paxos being fined by the NYDFS due to deficiencies in anti-money laundering practices and compliance failures related to its previous collaboration with the cryptocurrency exchange Binance.

The non-objection update was confirmed on August 18.