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Solana Integration: PayPal USD (PYUSD) Stablecoin Goes Live
On May 29, 2024, PayPal Holdings, Inc. (NASDAQ: PYPL) announced at Consensus 2024 that its stablecoin, PayPal USD (PYUSD), is now available on the Solana blockchain. This move aims to make PYUSD transactions faster and cheaper for consumers by improving the usability of PayPal’s stablecoin.
The integration of PYUSD on the Solana blockchain is significant given Solana’s reputation for handling a high volume of transactions quickly and at low cost. According to data from blockchain analytics platform Artemis, Solana is the most used blockchain for stablecoin transfers. Its efficiency and low transaction fees make it an ideal platform for PYUSD, which continues to be used for various payment applications.
Jose Fernandez da Ponte, senior vice president of PayPal’s Blockchain, Cryptocurrency and Digital Currency Group, highlighted PayPal’s ongoing mission to revolutionize digital commerce:
“For more than 25 years, PayPal has been at the forefront of digital commerce, revolutionizing commerce by providing a trusted experience between consumers and merchants around the world. 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.”
He noted that the availability of PYUSD on Solana furthers PayPal’s goal of enabling a stable digital currency designed for commerce and payments.
Sheraz Shere, General Director of Payments at the Solana Foundation, highlighted the benefits of the Solana network for new payment solutions:
“The speed and scalability of the Solana network make it the ideal blockchain for new accessible, convenient and instant payment solutions.”
He also said that PayPal’s adoption of Solana helps drive the next generation of fintech innovation.
PayPal and Venmo wallet users will see PYUSD as a unified balance regardless of the blockchain. This feature simplifies the user experience, allowing for easy transfers to external wallets on the Ethereum or Solana blockchain. In addition to PayPal and Venmo wallets, Crypto.com, Phantom, and Paxos are among the first platforms to support PYUSD on Solana, providing (hopefully) a seamless fiat-to-crypto experience for both consumers and businesses.
PayPal USD is issued and held by Paxos Trust Company, a limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. Reserves for PYUSD are fully backed by deposits in US dollars, US Treasuries and similar cash equivalents. PYUSD can be bought or sold through PayPal and Venmo at a price of $1.00 per PayPal USD.
PayPal, Inc. is licensed to conduct virtual currency business by the New York State Department of Financial Services. It should be noted that buying, selling, transferring and holding cryptocurrency with PayPal is not available in Hawaii and where prohibited by law.