PayPal USD Officially Launches on Stellar – What Does This Mean for XLM Price？

PayPals 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 Stellars native token, XLM.

Stellar Taps PayPal USD, Yield Stablecoins for Payment Edge

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.

PYUSD is now live on Stellar.⚡️Welcome to low-fee transfers, ~5s finality, anchors for fiat ramps, and Stellar Asset Contract-compatible contracts – built for real payments.#PYUSD #stablecoin https://t.co/qSUmT4GuXM

— PayPal Developer (@paypaldev) September 18, 2025

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 weve 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 Stellars Protocol 23 upgrade, “Whisk,” which went live earlier in the month.

Whisk introduced parallel smart contract execution and transaction throughput optimized toward 5,000 TPS. This marked one of the most significant technical improvements in Stellars history.

By reducing latency and costs while boosting capacity, Whisk sets the stage for PYUSD to scale efficiently across Stellars 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.

USDY, Ondos flagship yieldcoin, is now live on @StellarOrg.

Stellars expansive global network connects finance onchain with real-world solutions. Now, with USDY, it extends to real-world assets.

Together, were unlocking access to yield for global economies. pic.twitter.com/B0exhqTAvB

Unlike USDC or PYUSD, USDY automatically accrues daily yield while preserving liquidity.

“Stablecoins unlocked global access to the US dollar. With USDY, were 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 Stellars 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.

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.

Stellar (XLM) Price Performance. Source: BeInCrypto

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 giants stablecoin and the first yield-bearing stablecoin backed by Treasuries. Combined with its Whisk upgrade, the ecosystem has rarely looked stronger.

The post PayPal USD Officially Launches on Stellar – What Does This Mean for XLM Price？ appeared first on BeInCrypto.