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PayPal Launches PYUSD Stablecoin on Solana Blockchain – Ledger Insights
Today PayPal subsequently announced the availability of its PYUSD stablecoin on the Solana blockchain launch on Ethereum last year. The announcement is not surprising as Paxos Trust is the issuer of the stable currency and launched his own USDP stablecoin on Solana in January.
Since Paxos is regulated as a trust by the New York State Department of Financial Services (NYDFS), any new blockchain it uses requires regulatory approval. In contrast, Circle’s USDC is issued under a different legal regime and therefore does not have the same restrictions.
Compared to Ethereum, Solana has much lower transaction fees, usually less than three cents. Additionally, it supports substantially more than 1,000 transactions per second (TPS) compared to Ethereum’s approximately 15 TPS. However, unlike Ethereum, Solana has had numerous outages.
With Ethereum’s high transaction fees, people are not using it for everyday stablecoin payments. Currently, the capitalization of the PYUSD stablecoin is just under $400 million, with Paxos holding more than 30%. Cryptocurrency exchanges Crypto.com and Bullish make up another 30% or so. And the top 17 wallets, including DeFi protocols, hold 97% of the balance.
“PayPal USD was created with the intent to revolutionize commerce again by providing a fast, easy and affordable payment method for the next evolution of the digital economy,” said Jose Fernandez da Ponte, SVP of Blockchain, Cryptocurrency and Currency Group Digital. , PayPal. “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with stable value designed for commerce and payments.”
The Solana version of the stablecoin is available via PayPal, Venmo, Crypto.com, Phantom, and Paxos.
While Paxos Trust currently handles the custody and issuance of the stablecoin, yesterday we reported that PayPal has now obtained its own NYDFS trust card. Therefore, the issuance and custody of stablecoins could be done internally.