PayPal Banks on Solana Stablecoin Dominance to Boost PYUSD Adoption

PayPal said it has extended its US dollar stablecoin PYUSD to Solana blockchain network to enable its users to benefit from fast, secure and cheaper stablecoin transactions, according to a May 29 report. statement.

Solana corroborated this development in a separate statement, add that PYUSD holders would benefit from “high settlement throughput and speed” and a new token extension feature that expands compliance features.

José Fernandez da Ponte, Senior Vice President of PayPal, said:

“Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with stable value designed for commerce and payments.”

Experts have suggested that the move will facilitate the adoption of PYUSD among retail cryptocurrency users. Phantom, the most popular Solana-focused crypto wallet service provider, said its users can now buy and transfer PYUSD from their wallet without transaction fees.

Meanwhile, this expansion comes almost a year later The beginnings of PYUSD on Ethereum in August 2023. Since then, the stablecoin has recorded modest growth and attracted regulatory attention of the United States Securities and Exchange Commission (SEC).

According to CryptoSlate datathe market cap of PYUSD stood at approximately $400 million at press time.

Stablecoin powerhouse

Since the start of the year, the Solana blockchain has quietly established itself as a dominant stablecoin network thanks to its high transaction speeds and extremely low costs.

PayPal identified this as one of the reasons for its expansion into blockchain. The company noted that Solana has become the leading platform for tokenized transactions and is ideal for PYUSD as it gains traction in payment use cases among its more than 30 million merchants.

Data from blockchain analysis platforms Artemis And Visa confirms that Solana was the most used blockchain for stablecoin transfers over the past month. The supply of stablecoins on this layer 1 network has soared to over $4 billion, with Circle’s USD Coin (USDC) representing more than 70% of these assets.

Market observers attribute this growth to the significant influx of capital into the network, driven by memecoin frenzy and the growing DeFi activity within the Solana ecosystem.

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Published in: Solana, Stablecoins

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