Digital payments giant PayPal has launched its stablecoin, PayPal USD (PYUSD), on the Solana blockchain. The company plans to make transactions faster and cheaper for users, as well as give them more flexibility and control.
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PayPal USD is issued by Paxos Trust Company, a fully chartered limited-purpose trust company. Paxos and its products, including the expansion to new blockchains, are subject to regulatory oversight by the New York State Department of Financial Services.
PayPal USD has launched on @Solana! Solana, 2nd blockchain to support PYUSD after Ethereum, boasts rapid transactions & low costs, ideal for commerce. Seamlessly connect PayPal accounts for fiat-to-crypto ease. Learn more: https://t.co/dXpfOxWnNC pic.twitter.com/eTcq4imDso
— PayPal (@PayPal) May 29, 2024
PYUSD Transactions Will Be Cheaper With Solana
Solana is known for its high-speed transaction processing and low costs. According to data from blockchain analytics platform Artemis, it is the most used blockchain for stablecoin transfers. Solana’s ability to handle massive transactions at high speeds and extremely low costs significantly benefits commerce use cases.
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“PayPal has been at the forefront of digital commerce for more than 25 years,” said Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal. He added:
PayPal USD was created to revolutionize commerce again by providing a fast, easy, and inexpensive payment method for the digital economy’s next evolution. Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.
Sheraz Shere, GM of Payments at Solana, mentioned that the Solana network’s speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous. He added that continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation.
PayPal Has Simplified User Experience
According to PayPal’s press announcement, the simplified experience of PayPal and Venmo wallets shows PYUSD as a unified balance regardless of the blockchain. This feature allows for increased ease of use. When transferring to external wallets, users can choose to send PYUSD on either Ethereum or Solana.
Also Read: PayPal Chooses Crypto.com as Its Preferred Exchange for PYUSD
In addition to the PayPal and Venmo wallets, Crypto.com, Phantom, and Paxos are among the first platforms to offer PYUSD on Solana. This integration enables a seamless fiat-to-crypto experience for both consumers and enterprises.
According to the company, U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents fully back PayPal USD reserves. PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD. Meanwhile, Solana’s SOL remains the best-performing altcoin of this cycle as the entire market enters a consolidation phase.
Cryptopolitan reporting by Jai Hamid