PayPal has launched its native stablecoin, PYUSD, on the Solana blockchain. PayPal USD is issued by Paxos. Via this launch, the company is looking to bestow merchants with Solana’s low transaction cost, high speed, and enhanced security.
However, the “more nuanced reason” for choosing Solana, revolved around other “unique features” - like confidential transfers, fields, and transfer hooks - it enables for PYUSD. According to PayPal, these features are essential to further solidify PYUSD’s position as the go-to payment option.
Commenting on the launch, Jose Fernandez da Ponte, Senior Vice President of Blockchain, said,
“Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce & payments.”
PayPal launched PYUSD three quarters back, in August 2023 and let the world know that "PYUSD is here.” It was put to sea on Ethereum’s mainnet. A month after the launch, Crypto.com partnered with PayPal and Paxos. Through this tie-up, Crypto.com had been established as a “preferred” PayPal USD [PYUSD] exchange. On the heels of the latest update, the exchange announced that deposits of PYUSD via Solana have also been enabled on Crypto.com.
PayPay’s executive pointed out that “Ethereum works well enough.” However, to get retail on-board, “you basically need at least 1000 transactions per second, and you need transaction costs in the pennies, not in the dollars," he said.
The official announcement underlined that the launch of the stablecoin on Solana will help PYUSD to migrate from the “awareness to the utility phase” in the long-term process of adoption. The team expects more user-friendly and tangible use cases for PYUSD to emerge going forward.
Over the last 30-days, more than 316.8 million transactions have taken place on public blockchains. More than $3.1 trillion volume has been registered in the same period. According to data from a Visa dashboard, Solana bas has been leading the troop by single-handedly contributing 1/3rd of the aggregate transaction value. Binance’s BNB chain, and Tron follow behind.
