PayPal USD Stablecoin Now Available on Solana Blockchain, Providing Faster, Cheaper Transactions for Consumers
Rhea-AI Summary
PayPal announced that its stablecoin, PayPal USD (PYUSD), is now available on the Solana blockchain. This integration promises faster and cheaper transactions for users, enhancing digital commerce flexibility. Solana's high-speed, low-cost transaction capabilities make it ideal for PYUSD. The stablecoin can now be used on both Solana and Ethereum blockchains, offering greater control and convenience. The first platforms to support PYUSD on Solana include Crypto.com, Phantom, and Paxos. PYUSD is issued by Paxos Trust Company, fully backed by U.S. dollar deposits and U.S. Treasuries, available at a 1:1 rate of 1 USD per PYUSD.
Positive
- Integration with Solana promises faster and cheaper transactions for PYUSD.
- Increased flexibility and control by allowing use on multiple blockchains.
- Solana's low-cost, high-speed transactions are beneficial for commerce applications.
- PYUSD is fully backed by U.S. dollar deposits and U.S. Treasuries.
- Available on major platforms such as Crypto.com, Phantom, and Paxos.
- Enhanced usability with PayPal and Venmo wallets showing PYUSD as a unified balance.
Negative
- Regulatory oversight by the New York State Department of Financial Services, which might pose compliance challenges.
- PYUSD buying, selling, transferring, and holding are not available in Hawaii and other restricted areas.
News Market Reaction – PYPL
On the day this news was published, PYPL declined 1.80%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Crypto.com, Phantom and Paxos are first to provide onramps to use PayPal USD (PYUSD) on Solana blockchain
The Solana blockchain is known for processing massive amounts of transactions at high speeds with extremely low costs, providing significant benefits for commerce use cases. As the most used blockchain for stablecoin transfers, according to data from blockchain analytics platform Artemis, Solana has emerged as the leading blockchain to run tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases.
"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 inexpensive payment method for the next evolution of the digital economy," said Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal. "Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments."
"The Solana network's speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous," said Sheraz Shere, GM of Payments at the Solana Foundation. "Continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation."
The simplified experience of PayPal and Venmo wallets show PYUSD as a unified balance regardless of the blockchain. This allows for increased ease of use and when transferring out to external wallets, users have the choice to send PYUSD on Ethereum or Solana. In addition to the PayPal and Venmo wallets, Crypto.com, Phantom and Paxos are three of the first places to buy PYUSD on Solana, enabling a seamless fiat-to-crypto experience for consumers and enterprises.
PayPal USD is issued by Paxos Trust Company, a fully chartered limited purpose trust company. Paxos and its products – including expansion to new blockchains – are subject to regulatory oversight by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by
Issuance and custody of PayPal USD is performed by Paxos Trust Company, LLC. Learn more in PayPal's Cryptocurrency Terms, and in the Paxos Terms that also apply to PYUSD.
PayPal, Inc. is licensed to engage in virtual currency business activity by the
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.
1PayPal USD is not currently available to residents of
Media Relations Contact
Will Burns, wilburns@paypal.com
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SOURCE PayPal Holdings, Inc.
FAQ
What is the significance of PayPal USD (PYUSD) being available on Solana?
Which platforms support PayPal USD (PYUSD) on Solana?
How is PYUSD backed?
Can PYUSD be used on other blockchains?
What is the exchange rate for PayPal USD (PYUSD)?
Are there any restrictions on using PayPal USD (PYUSD)?
