PayPal Extends PYUSD Stablecoin from Ethereum to Solana

PayPal today announced that its stablecoin PayPal USD (PYUSD) now works on Solana.

In an announcement on Wednesday, the payment platform said that the move would bring “significant benefits for commercial use cases.”

Solana is the blockchain network behind the fifth largest cryptocurrency by market capitalization, SOL. It aims to compete Ethereum providing a faster network for developers to create anything from games to decentralized finance (DeFi) applications.

Its unique selling point is that it’s fast and cheap, so transactions can be processed and settled quickly – and PayPal noted this in its announcement.

“As the most widely used blockchain for stablecoin transfers, according to data from blockchain analytics platform Artemis, Solana has become the leading blockchain for executing tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases,” the announcement said. .

Jose Fernandez da Ponte, senior vice president of PayPal’s blockchain, crypto and digital currency group, added: “Making PYUSD available on the Solana blockchain continues our goal of enabling a digital currency with stable value designed for commerce and payments .

PYUSD is pegged to the dollar stable coin, backed by cash equivalents and short-term treasury bonds. PayPal spear PYUSD last year and Paxos Trust Co. issues the token. It also works on Ethereum.

A stablecoin is a type of digital asset tied to something stable, usually fiat currencies like the dollar. The idea with a stablecoin is that crypto users can hold assets on a blockchain, but their price won’t rise and fall as much as other assets, like Bitcoin.

Users can already purchase the stablecoin on major exchanges including Crypto.com, Coinbase, and Kraken.

Edited by Andrew Hayward

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