PayPal Expands Stablecoin PYUSD from Ethereum to Solana

PayPal today announced that its stablecoin PayPal USD (PYUSD) now works on Solana.

In a Wednesday announcement, the payments platform he said that the change would bring “significant benefits for commercial use cases”.

Solana is the blockchain network behind the fifth largest cryptocurrency by market cap, SOL. Intends to compete with Ethereum providing a faster network for developers to build anything from games to decentralized finance (DeFi) applications.

Its unique selling point is that it is fast and cheap, so transactions can be processed and settled quickly – and PayPal noted this in its announcement.

“As the most used blockchain for stablecoin transfers, according to data from blockchain analytics platform Artemis, Solana has emerged as the leading blockchain for executing tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases ,” the ad said. .

Jose Fernandez da Ponte, senior vice president of blockchain, cryptography and digital currency group at PayPal, added: “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.”

PYUSD is pegged to the dollar stable coin, backed by cash equivalents and short-term treasury bonds. PayPal released PYUSD last year and Paxos Trust Co. issues the token. It also works Ethereum.

A stablecoin is a type of digital asset pegged to something stable – usually fiat currencies like the dollar. The idea with a stablecoin is that crypto users can hold assets on a blockchain, but they will not rise and fall in price as much as other assets such as Bitcoin.

Users can now buy stablecoin on major exchanges including Crypto.com, Coinbase and Kraken.

Edited by Andrew Hayward

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