PayPal expands availability of PYUSD stablecoin to Solana blockchain
After initially launching on Ethereum, PayPal is extending the availability of its stablecoin PYUSD to the Solana blockchain. PayPal’s aim is to capture more interest in the individual payment sector.
Jose Fernandez da Ponte of PayPal emphasizes that Solana offers the necessary capabilities for individual payments, with significantly lower transaction costs and the ability to handle at least 1,000 transactions per second.
PYUSD on Solana introduces ‘Token Extensions’ that increase transaction privacy and compliance, features that were not possible on Ethereum.
This move could generate renewed interest in a relatively small cryptocurrency asset that has not yet gained widespread popularity despite the support of such a recognized brand. Currently, PYUSD has around 8,600 holders on Ethereum and a market capitalization just below $400 million, which is minimal compared to its competitors such as Circle and Tether, well-established crypto companies.
Solana’s advantages for individual payments
Jose Fernandez da Ponte, senior vice-president of blockchain at PayPal, explains that while Ethereum works correctly, PayPal’s needs in terms of individual payments require superior capabilities.
For individual payments, you need at least 1,000 transactions per second, and transaction costs should be measured in cents, not dollars.
This performance and cost criterion guided PayPal’s choice in favor of Solana, renowned for its speed and low cost per transaction.
Expanded features on Solana
The addition is particularly suited to the Solana Pay service, whose efficiency has been demonstrated using the Phantom wallet. PYUSD takes advantage of Solana’s ‘Token Extensions’, which were not possible on Ethereum.
These extensions, for example, allow merchants to make their transfers a little more confidential. This is one of the many compliance and programmability features of PYUSD on Solana. The ability to offer more private and regulatory-compliant transactions could make PYUSD particularly attractive to merchants looking to securely and efficiently integrate stablecoin payments.
