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PayPal releases its stablecoin natively on the Solana blockchain By Investing.com
Payments giant PayPal (NASDAQ:) has officially deployed its fiat-backed stablecoin, PayPal USD (), popular for its cheap and fast transactions and support for numerous ecosystem applications, on the blockchain.
According to its official statement, this integration makes PYUSD transactions faster and cheaper, giving users more flexibility and control by providing the ability to use multiple blockchains.
The integration with Solana ensures that PayPal and Venmo wallets display PYUSD as a unified balance. Users can choose to send PYUSD on the blockchain or Solana when transferring to external wallets. Additionally, PYUSD is now available for purchase on platforms such as Crypto.com, Phantom, and Paxos.
The timing of PayPal’s announcement coincides with a surge in the stablecoin market. said in April that it plans to launch a stablecoin designed primarily for enterprise customers, alongside XRP, later this year.
“The availability of PYUSD on the Solana blockchain supports our goal of enabling a stable digital currency for commerce and payments,” said Jose Fernandez da Ponte, vice president of cryptocurrency at PayPal.
“The speed and scalability of the Solana network make it the ideal blockchain for accessible, convenient and instant new payment solutions. Adoption by industry players like PayPal drives the next generation of fintech innovation,” added Sheraz Shere, GM of Payments at Solana Foundation.
Solana has made a name for itself with its high throughput, handling around 65,000 transactions per second (TPS), while Ethereum processes around 30 TPS. This big difference is attributed to Solana’s Proof of History (PoH) mechanism combined with the Proof of Stake (PoS) model, which speeds up transaction and block validation.
PayPal became the first major financial services company to release a public stablecoin with the introduction of PYUSD last August. Issued by Paxos Trust Co. and pegged to the dollar, PYUSD allows customers to redeem it into dollars, use it for purchases, and purchase other cryptocurrencies.
Despite numerous efforts to expand the utility of its PYUSD stablecoin, Tether’s USDC and USDT still account for nearly 99% of the stablecoin market on Solana.
Stablecoins are among the most successful real-world applications of cryptographic technology and are increasingly used to pay for goods and services in various parts of the world.