PayPal has announced that its stablecoin, PayPal USD (PYUSD), is now supported on the Solana blockchain.
This integration leverages Solana’s high-speed, low-cost transaction capabilities, enhancing PYUSD’s usability in various financial applications.
PayPal’s PYUSD is Now Available on Solana Blockchain
Solana’s superior transaction speed and lower fees made it an attractive addition to PayPal. According to SolanaFM, Solana can handle 1,423 transactions per second (tps), significantly surpassing Ethereum’s 12-15 tps. This capability is crucial for retail transactions, which require a minimum of 1,000 tps.
“Solana’s speed and low transaction fees were key factors in our decision,” said Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency.
Despite past technical issues, Fernandez da Ponte expressed confidence in Solana’s current stability. Sheraz Shere, General Manager of Payments at the Solana Foundation, indicated that previous technical problems are now resolved. The most recent outage in February lasted only five hours, a significant improvement from earlier disruptions.
Read more: How To Buy PayPal Stablecoin (PYUSD)
Shere also highlighted PayPal’s integration of PYUSD on Solana as an example of traditional financial companies increasingly embracing digital assets. He noted that fintechs are starting to recognize stablecoins as a product-market fit, referencing Stripe Inc.’s decision to enable stablecoin payments for merchants.
“Fintechs are starting to recognize stablecoins as the product-market fit they’ve been waiting for,” he said.
At the time of writing, PYUSD has a market capitalization of $398 million, dwarfed compared to Tether’s $111 billion. However, the stablecoin’s usage spans crypto exchanges and decentralized finance, with plans to extend into retail payments. Emerging markets in Latin America, Southeast Asia, and Africa are also targeted. PayPal’s Xoom service already facilitates cross-border payments using PYUSD.
Read more: 7 Best Crypto Platforms To Buy PayPal Stablecoin (PYUSD)
Yet, PayPal’s journey with stablecoins has faced challenges. The company paused its project in February 2023 due to regulatory scrutiny and received a subpoena from the US Securities and Exchange Commission in November.
“We are collaborating with them and providing the requested information,” Fernandez da Ponte assured.
PayPal’s decision to integrate PYUSD with Solana shows its dedication to improving digital payments. Using Solana’s fast and low-cost transactions, the company can make its stablecoin more efficient and accessible. This partnership is a big step in offering better, more affordable financial services to people worldwide.
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