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PayPal's Launches PYUSD Stablecoin on Solana

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By Abi Gibson - - 5 Mins Read
PayPal logo displayed on a smartphone screen
Featured Photo | Marques Thomas/Unsplash

At the Consensus 2024 event in Austin, Texas, PayPal Holdings, Inc. revealed the launch of its stablecoin, PayPal USD (PYUSD), on the Solana blockchain.

This move aims to expedite and reduce costs for users when launching the PayPal stablecoin.

The PYUSD was introduced in August 2023 and is currently operational on the Solana network.

Users can now acquire PYUSD through PayPal and Venmo wallets. Additionally, the stablecoin can be purchased using fiat currency through providers like Crypto.com, Phantom, and Paxos.

Paxos-issued stablecoin will employ Solana to promote broader adoption in commerce and payments.

The Solana integration primarily focuses on its ability to minimize costs, high transaction capacity, quick settlement times, and token extension.

The aim of this integration is to enable fast and secure stablecoin payments for more than 30 million merchants.

Jose Fernandez da Ponte, PayPal’s SVP for Blockchain, Crypto & Digital Currencies, said, “Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce & payments.”

Technological Advantages of Solana

PayPal crypto option on Solana is because it can handle massive transaction volumes at high speeds and low costs.

Fernandez da Ponte stated, "PayPal chose the Solana network due to the blockchain processing massive amounts of transactions at high speeds with extremely low costs."

Solana's blockchain technology is known for its effectiveness in stablecoin transfers, which is crucial for PayPal's objective of promoting the adoption of digital currency.

The launch of PayPal's stablecoin on Solana enables PYUSD to function at its best and seeks to encourage wider acceptance of digital currency transactions.

Fernandez da Ponte noted, “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.”

Also read: Revealed: PayPal's New Stablecoin Has Scary Feature that Can Wipe Portfolios

Addressing Network Stability and Future Growth

The introduction of PYUSD on Solana places PayPal among leading financial institutions such as Visa, WorldPay, and Stripe, which also leverage Solana’s blockchain technology.

This support for Solana is vital for PayPal and Paxos’s mission to establish PYUSD as a global leader in the stablecoin market.

Despite some past issues with network outages, Solana has demonstrated steady growth and stability.

The network’s capacity for up to 65,000 transactions per second at negligible costs contrasts sharply with Ethereum’s slower performance and higher fees.

Sheraz Shere, the general manager of payments at the Solana Foundation, said, “The Solana network’s speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous.”

“Continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation,” he added.

In August last year, the financial and digital assets industry was surprised when PayPal became the first prominent financial service to introduce a native stablecoin.

PayPal stated at that time that the launch of the PayPal stablecoin was aimed at promoting the use of digital currency and not at competing with cryptocurrencies like USDT and USDC.