- PayPal has announced that its PYUSD stablecoin is launching on the Solana blockchain as it prepares to offer faster and cheaper transactions.
- On the Solana blockchain, the stablecoin can expand its adoption for commerce and payments.
During the Consensus 2024 in Austin, Texas, PayPal announced that its PYUSD stablecoin is now available on the Solana blockchain. According to the announcement, PYUSD on Solana will be issued by its partner, Paxos Trust Company. The expansion to the smart contract platform marks a major milestone for both PayPal and Solana.
By launching on Solana, PYUSD will be tapping into one of the fastest, scalable, and low-cost blockchains. Solana has emerged as the most used blockchain for stablecoin transfers according to blockchain analytics platform Artemis. With PYUSD aiming to dominate the industry, launching on the Solana blockchain is key to its success.
Launched in August 2023, PayPal notes that the launch, of PYUSD will be cheaper and faster to use on Solana, possibly accelerating its adoption. Specifically, this could expand its adoption for commerce and payments.
Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal, explains:
Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.
The launch further brings credibility to the Solana blockchain, now working with a financial hub boasting 25 years of fintech innovation. This was highlighted by Sheraz Shere, GM of Payments at the Solana Foundation, who noted, “Continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation.”
PYUSD is now available on Solana and its rival Ethereum. Ethereum users have continually raised concerns about the network’s inability to scale, high transaction fees, and slow speeds. For this reason, Solana has in recent months dominated the stablecoin space, attracting more users and digital assets.
The growth of the network has contributed to the positive performance of the network’s native token, SOL. At the time of writing, SOL is trading for $165. The altcoin has lost 3% of its value in the last 24 hours, extending its weekly losses by 7%.
Investors remain optimistic of a breakout above $200 soon with an all-time high in view. In addition to network growth, the possibility of a Solana spot ETF could offer a bullish reprieve in the coming weeks.
Since taking an interest in the blockchain industry, PayPal has made great strides as it looks to innovate. Earlier this year, the fintech company integrated Paxos and Chainlink to boost the presence of PayPal USD (PYUSD) on the blockchain.
As CNF reported, the collaboration between Chainlink and Paxos not only promotes asset tokenization but also paves the way for the growth of blockchain finance globally. Chainlink’s Price Feeders are key to attracting liquidity and promoting PYUSD adoption by providing reliable market data to foster the growth of PYUSD usage.
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