PayPal’s stablecoin PYUSD has been expanding rapidly across the broader crypto landscape. In the past month alone, total supply surged 113 percent, reaching an all-time high of $2.54 billion dollars in circulation, making it the seventh-largest stablecoin behind USDe, USDS, DAI, and USD1.
Ethereum currently holds about 1.84 billion dollars worth of PYUSD. Solana holds around 624 million. And yet, Stellar hosts only about 2.25 million PYUSD.
My focus isn’t the majority of PYUSD on Ethereum and Solana, my concern is how it is being deployed on Stellar, where the story looks very different.
Despite public announcements that PYUSD is now available on Stellar, the on-chain data still paints a picture of a quiet rollout rather than a full-scale retail integration. The Stellar version of PYUSD technically exists, but its ecosystem remains almost entirely inactive.
Until recently, PYUSD on Stellar even traded above $2, reflecting thin order books and limited arbitrage capacity. It only recently began holding its one-dollar peg again.
Liquidity Remains Extremely Limited
Unfortunately, there is still no bridge or transfer mechanism allowing users to move PYUSD from PayPal or Venmo directly to the Stellar network.
According to on-chain data, the total DEX liquidity for PYUSD on Stellar is around $103.27, all provided by individual users, not Paxos (the issuer).
For perspective, the Cleanshave token currently ranks as the largest liquidity pool with just $43 in value.
Inside the Soroban Contract
The most active component of PYUSD’s Stellar presence is a Soroban-based liquidity pool at contract address CDMH535JSD224YXPET3B4SJOLXTQQ24GRSCWACGYBKSH2DKFJYWI7SUW.
This contract isn’t a token holding wallet. It’s a curve-style stable-swap pool, similar to the automated market makers used by protocols like Curve or Balancer. The pool holds two assets, PYUSD and USDC, both configured with seven decimal places and equal weighting.
As of this week, the contract holds approximately 1,010,036 USDC and 989,994 PYUSD—roughly two million dollars in total liquidity. That’s enough to test slippage, fee behavior, and swap routing, but not enough to support payments or real market volume.
The contract parameters show that it has been professionally configured, with a trade fee of 0.10 percent, a protocol fee of 0.05 percent, and an active amplification parameter that tightens the swap curve for stable pairs. Protocol fees are already accumulating, indicating that swaps are being executed and tracked correctly.
Swap Activity Points to Internal Testing
Recent transaction data shows dozens of swaps executed on-chain. Every single one of these operations was a swap call through the contract—no deposits, withdrawals, or reward claims.
The pattern seems obvious. Transactions use round numbers such as one million in and 998,986 out. They occur in tight clusters, often seconds apart, and come from the same small set of wallets. Two consistent price ratios appear: around 0.999, representing stable-to-stable swaps, and around 0.408, likely representing a secondary index or token with different precision.
Everything about this activity looks like controlled, automated testing rather than real user trading. The transactions are designed to probe the contract’s swap logic, fee distribution, and price behavior under load.
Symbolic, Not Systemic
The contract was deployed on September twenty-third, less than a month before the observed activity. Its deployment confirms that Soroban is production-ready and that PYUSD’s technical infrastructure is being integrated into the network. But there are still no PayPal or Venmo bridges, no retail access, and no issuer-backed liquidity beyond this initial pool. The total PYUSD footprint on Stellar remains around 2.25 million tokens—tiny compared to its presence on Ethereum or Solana.
The smart contract is live. The code works. The swaps clear. But the market isn’t live yet.
Reading Between the Blocks
From a systems perspective, this appears to be a final-stage integration test. Paxos and PayPal, or their partners, are likely validating that Soroban automated market makers can handle PYUSD liquidity before a larger public release or institutional seeding. If this pool is the prototype for future stable-swap infrastructure on Stellar, then we are watching the groundwork for full PYUSD support take shape.
Until user deposits open and bridging from PayPal or Venmo becomes possible, PYUSD on Stellar remains symbolic rather than systemic—a proof of readiness rather than a live payment rail.
While PYUSD is technically live on Stellar, it is only in a limited, test-oriented form. The Soroban contract is functioning, stable, and collecting small amounts of fees, with about two million dollars in liquidity and consistent swap behavior. However, the on-chain data continues to indicate a controlled rollout rather than active public use.
The infrastructure is in place, but the launch hasn’t happened yet. What we’re seeing is the rehearsal before the curtain rises.
Use Cleanshave’s Tool for a complete breakdown of PYUSD Liquidity on Stellar