Market Times:

London:

New York:

Singapore:

News

PayPal Stablecoin PYUSD Launches on Solana Network

PayPal’s stablecoin goes multi-chain and expands to the Solana blockchain.

Avatar image of Mishael Nwani Mishael Nwani•May 29, 2024
PYUSD

Giant fintech company PayPal has officially launched its stablecoin, PYUSD, on the layer-1 Solana blockchain. The company’s executives confirm that the integration flourishes from Solana’s high throughput and cost-effectiveness.

PYUSD Expands to Solana

PYUSD was launched on the Ethereum network in August 2023 with a joint effort from blockchain company Paxos Trust. The stablecoin’s creation is underpinned by PayPal’s effort to embrace emerging digital technology to enable payments. PYUSD allows users to perform daily transactions. Since its inception, the stablecoin has been accessible to over 100 million users on PayPal and Venmo apps. Institutional investors have also helped to promote PYUSD’s usage.

While PYUSD lives on the Ethereum blockchain, its expansion to Solana will allow faster and cheaper transactions. Unlike Ethereum which processes 15 transactions per second, Solana brings a capacity of around 65,000 transactions per second to the table.

Commenting on the integration, PayPal’s senior vice president of blockchain, Jose Fernandez da Ponte, stated:

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

PYUSD’s integration with the Solana network entails that the stablecoin will benefit from features common to Solana-based tokens, such as confidential transactions, transfer hooks, and fields. The stablecoin can also be integrated into Solana-based decentralized apps (dApps). These features are believed to enhance the use cases of the PayPal stablecoin.

Solana Captures More Attention

For several months, Solana has captured the most attention within the crypto industry. With thousands of memecoins and other projects launching on the Solana mainnet, it has become home to some of the biggest crypto projects.

These milestones are commendable given that Solana experienced a severe bearish trend earlier last year due to its affiliation with the infamous FTX founder Sam Bankman-Fried. Although its native coin, SOL, dropped to as low as $9 at the time, it has now recovered and currently trades at $168.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.