On June 11, PayPal announced plans to launch US dollar-backed Stablecoin, PayPal USD (PYUSD), on its stellar blockchain network, withholding regulatory approval from the New York State Department of Financial Services. If approved, this move will be marked beyond the current availability of Pyusd and beyond availability in Ethereum and Solana.
PayPal described Stellar as a blockchain tailored to low-cost, fast payments, with strong real-world utilities. By adding Stellar support, the company aims to improve the accessibility and ease of use of PYUSD for payments, cross-border transfers, and financial services. The integration is expected to enhance daily payment options and increase access to funding tools such as working capital and small business loans.
The press release highlighted Stellar's existing global infrastructure, including a wide network of on-ramp and off-ramp, local payment systems and digital wallets that could help guide PYUSD to users in over 170 countries. PayPal also highlighted the potential benefits of liquidity and settlement through Payfi, a new digital finance mechanism that allows businesses to access real-time capital paid to Stellar's PYUSD.
May Zabaneh, PayPal's vice president of digital currency, said the partnership will help advance the use of blockchain in cross-border payments. Denelle Dixon, CEO of Stellar Development Foundation, said the collaboration will help bring practical use of Stablecoin to emerging markets and small businesses around the world.
PYUSD is issued by the Paxos Trust Company and is fully supported with cash and cash equivalent reserves, with a fixed redemption value of $1.00 per token.
This is a short video released by the Stellar Foundation, where Ian Burrill, senior director of PayPal, who manages the Crypto Engineering team, explained why his company was excited to launch PYUSD on Stellar. Burrill said Stellar is a fast, low-cost network, expanding Pyusd's range to over 180 countries. He goes on to say that if merchants can use PYUSD on the star, they can send money in real time, resulting in more efficient capital management.
Technical Analysis
- Stellar's XLM token recorded a significant price increase during the 24-hour trading period from 17:00 UTC on July 11 to July 12, with stocks within about 20.59% volatility between session lows of $0.345 and $0.416 moving to within $0.071, according to the Coindesk Research Analysis model.
- The most notable trading activity occurred in the early morning hours at 01:00 on July 12th. UTC has established technical support near a price level of $0.354, with XLM stocks increasing from $0.354 to $0.393 in a substantial amount of 551.38 million units, significantly exceeding 234.19 million to 234.19 million.
- The upward momentum followed July 12th at 11:00 UTC, reaching a session high of $0.416, followed by resistance in the $0.400-$0.403 range, with the agency's profits appearing to limit further progress.
- At the final time of the transaction from 15:47 UTC to 16:46 UTC on July 12, XLM showed an update strength of $0.37 to $0.39 with a 3.89% advance, extending the positive momentum of the session.
- The most significant price movement occurred between 16:03-16:08 UTC when the stocks rose from $0.374 to $0.385 with an increase of 13.16 million and 1714 million respectively, well above the average of 3.2 million units per hour.
- This activity establishes stocks with consolidated stocks at approximately $0.385-0.387 for the final 30 minutes of the session, with market participants aiming for potential continuance towards a resistance level of $0.39-0.40 identified in a broader technical analysis.
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