Online payments company PayPal is about to integrate its stablecoin PayPal USD (PYUSD) into the Solana (SOL) blockchain, which is increasingly becoming the preferred choice for meme coin issuers.
This move follows the successful launch of PYUSD on the Ethereum (ETH) blockchain and its integration into PayPal’s Venmo peer-to-peer (P2P) payment service. PayPal has decided to further integrate PYUSD into the Solana blockchain. According to Bloomberg, this decision was mainly driven by Solana’s high speed and low transaction fees. $PYUSD
Expand PYUSD’s influence in the Meme coin market
The Solana blockchain attracted PayPal to join because of its excellent transaction processing capacity, according to data from SolanaFM, Solana can process up to 1,423 transactions per second (tps). This is in stark contrast to Ethereum, which processes transactions at a speed of about 12 to 15 transactions per second.
Jose Fernandez da Ponte, senior vice president of blockchain (cryptocurrency and digital currencies) at PayPal, specifically noted the importance of maintaining high transaction volumes in the retail sector and believes that Solana is "ideal" to meet this demand.
Solana has seen a surge in trading volume, reaching a two-year high. Meme coins like Slerf, Boom of Meme, Snap, and Dogwifhat have boosted trading activity on decentralized exchanges, coinciding with payments companies exploring new opportunities in the nascent meme coin market.
According to Bloomberg, while most PYUSD activity occurs on cryptocurrency exchanges and in the decentralized finance space, PayPal hopes to expand its use to retail payments and emerging markets in Latin America, Southeast Asia, and Africa.
In April this year, PayPal launched its cross-border remittance service Xoom, allowing users to make international remittances by converting PYUSD into US dollars.
PayPal PYUSD integrated multi-chain strategy
It is important to note that PayPal encountered regulatory scrutiny in February 2023 and temporarily shelved its stablecoin project plans. In addition, in November, the company received a subpoena from the U.S. Securities and Exchange Commission's Enforcement Division regarding its stablecoin-related work.
However, PayPal is actively working with the U.S. Securities and Exchange Commission (SEC) to provide the required information to allay regulatory concerns, Vice President Fernandez da Ponte confirmed.
Despite technical challenges such as network slowdowns and outages, PayPal remains confident in Solana’s stability and says users can easily switch to Ethereum if any outages occur.
Additionally, the online payments company plans to explore integrating PYUSD into more blockchains, which is consistent with its initial plan to make the stablecoin run on multiple chains.
The company's entry into the stablecoin market shows that traditional payment companies are increasingly interested in digital currencies. Coupled with Stripe Inc.'s recent opening of online stablecoin payment functions for its merchants, this further confirms this trend. $SOL
Conclusion
PayPal's decision to integrate its stablecoin PYUSD into the Solana blockchain not only demonstrates the company's adaptation and adoption of emerging technologies, but also reflects the rapid development and transformation of the global payment industry in the field of digital currency. By leveraging Solana's high efficiency and low cost advantages, PayPal will not only be able to improve the performance of its services, but also expand into emerging markets and enhance its competitiveness in the global financial ecosystem.
In addition, the cooperation with the SEC and the exploration of multi-chain strategies further demonstrate PayPal's long-term commitment to the stablecoin field and its emphasis on regulatory compliance. With the participation of more traditional financial institutions, the future of digital currency and blockchain technology will be brighter. #PayPal #Solana #数字化转型 #PYUSD
