PayPal expands its PYUSD stablecoin to the Solana network – DiarioBitcoin
By Hannah Perez
PayPal stablecoin lands on the Solana Blockchain. PYUSD is now a multi-chain asset with new capabilities. Previously it was only available on Ethereum.
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- PYUSD, PayPal’s stablecoin, is officially available on Solana
- PayPal chose to expand to Solana due to transaction speed and low costs
- PYUSD remains small compared to its crypto-native rivals
The digital payments giant PayPal is making a move towards Solana.
In a press release this Wednesday, PayPal announced the official expansion of its stablecoin PYUSD towards the blockchain Solariumwhich will make your product token stable be “faster and cheaper to use”.
The announcement comes just over a year after the company unveiled PayPal USD (PYUSD), its digital stablecoin pegged to the US dollar. He token was initially launched on the blockchain Ethereum in January 2023, making PayPal the first financial institution of its kind to launch a stablecoin own.
The availability of PYUSD in Solarium now convert to that stablecoin into a multi-chain digital asset, offering “greater control and flexibility” to users, according to the company.
PayPal highlighted that the integration with Solariumthe most used blockchain for transfers of stable coins, according to data cited from Artemis, will provide “important benefits for commercial use cases” by PYUSD. He added that Solarium is known for processing “massive amounts of transactions at high speeds with extremely low costs.”
Stablecoin PayPal lands on Solarium
“Make PYUSD available on the blockchain from Solana furthers our goal of enabling a digital currency with stable value designed for commerce and payments“, stated J.Osé Fernández da Ponte senior vice president of the Blockchain group, Cryptocurrencies and PayPal Digital Currency.
Da Ponte explained to CoinDesk that although well Ethereum “works pretty well“, interest in retail payments drives the need for 1,000 transactions per second capacity and transaction costs in cents instead of dollars.
Beyond cost and speed, PYUSD is also getting new capabilities in Solarium that were not possible in Ethereumas reported CoinDesk. The stablecoin will use the standards of “token extensions” of this chain to allow merchants to make their transfers a little more confidential, for example, according to the report. This is one of PYUSD’s few programmability and compliance capabilities, the post adds.
Meanwhile, app users PayPal and Venmo They will have a simplified experience, without having to worry about which chain they are moving their PYUSD on, since the balance will be displayed in a unified way regardless of the network.
PYUSD is small compared to its rivals
PYUSD was launched as an ERC-20 token in collaboration with Paxos, which is in charge of the broadcast, last August. It is backed by US dollar deposits, short-term Treasury bonds and cash equivalents.
Despite being backed by a renowned company from the traditional financial industry, PayPal’s stablecoin has seen modest success in terms of adoption and market volume.
PYUSD has around 8,600 holders on the blockchain Ethereum and a market capitalization of less than USD $400 million, small compared to its competitors USDT and USDC, of the crypto-native companies Tether and Circle respectively, with capitalizations that exceed USD $100,000 million, as is the case of the first.
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
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