Last year, on August 7, 2023, the digital payment leader PayPal introduced its PYUSD stablecoin on the Ethereum ERC-20 blockchain. However, today, on May 29, 2024, PayPal made a U-turn and moved to the Solana blockchain. The world’s 5th biggest cryptocurrency, Solana (SOL), recently made a post on X (previously Twitter) disclosing that PayPal’s PYUSD is live on Solana.
PYUSD is now Solana blockchain
According to the post on X, the PYUSD stablecoin issued by Paxos will now leverage the Solana blockchain and token extension to serve over 30 million merchants. The reason for this latest development is to empower users and offer fast and secure stablecoin transactions.
Following this latest development, Jose Fernandez da Ponte, SVP, Blockchain, Crypto & Digital Currencies at PayPal, said: “Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce & payments.”
However, PayPal’s decision to expand its stablecoin to Solana can be attributed to several key factors. Firstly, Solana offers cost-effectiveness, providing a more efficient infrastructure for transactions compared to other blockchain networks. Secondly, Solana boasts high throughput and speedy settlement, crucial for a platform handling a large volume of transactions like PayPal. This ensures quick and seamless transactions for users. Additionally, Solana’s token extensions offer expanded functionality, particularly in terms of compliance.
This means that PayPal can integrate features to meet regulatory requirements more effectively, ensuring a smoother experience for users and compliance with financial regulations. Overall, PayPal’s move to expand its stablecoin to Solana is driven by a combination of cost-effectiveness, speed, and enhanced functionality for compliance purposes.
Visa, World Pay, and Stripe also opt for Solana blockchain
Besides PayPal’s decision to choose Solana’s blockchain technology, other financial giants including Visa, World Pay, and Stripe have opted to build on Solana due to its resilient community and scalability for on-chain operations. Solana’s support is instrumental in realizing the vision of PYUSD by facilitating partnerships between PayPal, Paxos, and other major players.
Following this ongoing development, Solana (SOL) price remains stable. Currently, SOL is trading near $168.5 and in the last 24 hours, it remained stable. If we look at the performance of SOL over a longer period, in the last 7 days, it experienced a 6% downside move. Whereas, in the last 30 days, SOL experienced a 25% upside move.
Last year, on August 7, 2023, the digital payment leader PayPal introduced its PYUSD stablecoin on the Ethereum ERC-20 blockchain. However, today, on May 29, 2024, PayPal made a U-turn and moved to the Solana blockchain. The world’s 5th biggest cryptocurrency, Solana (SOL), recently made a post on X (previously Twitter) disclosing that PayPal’s PYUSD […] Read MoreNews, PayPal, Stablecoin
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