Payment giant PayPal ‘s stablecoin USD (PYUSD) is now available on the Solana (SOL) blockchain. Integration will reduce commission costs for asset transactions.
PayPal Stablecoin PYUSD is now available in Solana
The key factors in the expansion of PYUSD on Solana were the high speed of processing transfers and low commissions on the network. On the other hand, the SOL blockchain can handle up to 65k transactions per second starting at $0.0025, while Ethereum can only process 15k at higher fees. During periods of high network load, commissions reach $50 per transaction. However, the PYUSD developers have announced the extension of PYUSD to Solana. This marked the stablecoin’s first step outside the Ethereum ecosystem.
However, everything is not so smooth: Solana has previously faced serious technical problems more than once, which the developers are actively working on. Moreover, they have already managed to achieve significant success. The last outage in February lasted just five hours. All previous times, “repairing” the blockchain took much longer.
PayPal Senior Vice President of Blockchain Jose Fernandez da Ponte is confident in Solana’s current stability. Sheraz Sher, CEO of Payments at the Solana Foundation, also emphasized that all past technical issues have already been resolved.
“Adding support for PYUSD on the Solana network furthers our goal of creating a stable value digital currency for commerce and payments,” said Da Ponte. In addition, Sher also cited the integration of PYUSD and Solana as a prime example of the adoption of digital assets by traditional finance. Many payment companies are starting to recognize stablecoins as market-relevant products, he said.
Year One of PYUSD: Market Traction Meets Regulatory Uncertainty
According to CoinGecko, at the time of writing, PYUSD’s capitalization is $398 million. According to this indicator, the asset ranks 12th in the ranking of the largest stablecoins on the market. PayPal’s stablecoin daily trading volume exceeds $17.6 million.
PYUSD appeared last summer. It is pegged to the US dollar and is issued by Paxos Trust Co. based on Ethereum (ETH).
PayPal is continuously increasing the presence of its stablecoin in the market. In April, the payments company launched a cross-border payments service called Xoom. American customers were able to convert PYUSD into US dollars and send funds to recipients in 160 countries. These transfers are not subject to commission.
However, PYUSD’s path has not been without difficulties. In November 2023, the US Securities and Exchange Commission (SEC) issued a subpoena to PayPal. The regulator has questions regarding the fintech giant’s stablecoin.
