Solana

PayPal launches PYUSD stablecoin on the Solana blockchain – Ledger Insights

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8 months ago

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Today PayPal announced the availability of its stablecoin PYUSD on the Solana blockchain after launch on Ethereum Last year. The announcement is not surprising since Paxos Trust is the issuer of the stable coin and he launched his Stablecoin USDP on Solana in January.

Since Paxos is regulated as a trust by the New York State Department of Financial Services (NYDFS), each new blockchain used requires approval from the regulator. In contrast, Circle USDC is issued under a different legal regime and is therefore not subject to the same restrictions.

Compared to Ethereum, Solana has much lower transaction fees, typically less than three cents. Additionally, it supports significantly over 1,000 transactions per second (TPS), compared to around 15 for Ethereum. However, unlike Ethereum, Solana has experienced numerous outages.

With Ethereum’s high transaction fees, people are not using it for daily stablecoin payments. Currently, the stablecoin capitalization of PYUSD is just under $400 million, with Paxos holding over 30%. Crypto exchanges Crypto.com and Bullish account for around another 30%. And the top 17 wallets, including DeFi protocols, hold 97% of the balance.

“PayPal USD was created with the goal of once again revolutionizing commerce by providing a fast, simple and low-cost payment method for the next evolution of the digital economy,” said Jose Fernandez da Ponte, Executive Vice President of Blockchain, Cryptocurrency and digital currency group. , PayPal. “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with stable value designed for commerce and payments.”

The Solana version of the stablecoin is available through PayPal, Venmo as well as Crypto.com, Phantom and Paxos.

While Paxos Trust currently handles the custody and issuance of the stablecoin, we announced yesterday that PayPal has now obtained its own NYDFS trust charter. Therefore, the issuance and custody of stablecoins can be taken care of internally.

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