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PayPal USD stablecoin now available on the Solana blockchain
PayPal announced that PayPal USD (PYUSD) is now available on Solana blockchain, increasing speed and reducing costs for stablecoin transactions.
The availability of PYUSD on the Solana blockchain gives users the ability to choose between multiple blockchains, significantly increasing their flexibility and control over transactions.
The Solana blockchain is known for processing massive amounts of transactions at high speed with very low costs, offering significant advantages for commercial use cases. As one of the most used blockchains for stablecoin transfers, according to data from blockchain analytics platform Artemis, Solana has emerged as a prominent blockchain for executing tokenized transactions and is ideal for PYUSD as it continues to be used for payment cases.
PayPal officials said they have been at the forefront of digital commerce for more than 25 years, revolutionizing it by providing a trusted experience among consumers and merchants around the world. PayPal USD was created with the intent to once again increase commerce by providing a fast, easy, and affordable payment method for the next evolution of the digital economy. Making PYUSD available on the Solana blockchain furthers their goal of enabling a digital currency with stable value designed for commerce and payments.
Commenting on this development, representatives of the Solana Foundation also stated that the speed and scalability of the Solana network make it a suitable blockchain for new accessible, convenient and instant payment solutions. Continued adoption by industry players like PayPal helps enable the next generation of fintech innovation.
Unified PYUSD balance between PayPal and Venmo wallets
The simplified PayPal and Venmo wallet experience shows PYUSD as a unified balance regardless of the blockchain. This allows for greater ease of use and when transferring to external wallets, users can choose to send PYUSD to Ethereum or Solana. In addition to PayPal and Venmo wallets, Crypto.com, Phantom, and Paxos are three of the top places to buy PYUSD on Solana, enabling a seamless fiat-to-crypto experience for consumers and businesses.
Regulatory oversight and support of PayPal USD
PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company. Paxos and its products, including expansion into new blockchains, are subject to regulatory oversight by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasury securities and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.
PayPal is licensed to conduct business in virtual currency by the New York State Department of Financial Services. Buying, selling, transferring and holding cryptocurrency with PayPal is not available in Hawaii and where prohibited by law.