TLDR
- PayPal has taken a significant step by integrating its stablecoin, PayPal USD (PYUSD), with the Solana blockchain, making it available alongside Ethereum's existing network.
- This expansion taps into Solana's impressive transaction rate and economical fees, optimizing PYUSD for smoother and more efficient commerce and payment operations.
- For users of PayPal and Venmo wallets, this means a versatile experience, as their PYUSD balances remain harmonized regardless of whether their assets are held on Solana or Ethereum.
- With platforms like Crypto.com, Phantom, and Paxos stepping up to offer PYUSD on Solana, the transition from traditional currency to digital tokens becomes almost seamless for consumers and businesses alike.
- PayPal's push to bring PYUSD to Solana fits squarely with its broader aim of paving the way for widespread cryptocurrency acceptance while ensuring a low-cost, straightforward method to transact digitally.
PayPal, the global payments giant, PayPal has publicized its decision to extend its stablecoin, PayPal USD (PYUSD), onto the Solana blockchain.
This initiative marks a pioneering move by PayPal outside of the Ethereum system, as it seeks to enhance the speed and reduce the cost of using PYUSD for its expanding user network.
Through this extension to the Solana blockchain, PayPal capitalizes on the system's superior transaction capacity and minimal expenses, especially advantageous for transactional applications and business use.
The Solana blockchain boasts the capability to process as many as 65,000 transactions every second at a cost of mere fractions of a cent, outmatching Ethereum's 15 transactions per second and its significantly higher fees, which can skyrocket with network traffic.
Jose Fernandez da Ponte, head of PayPal's Blockchain, Cryptocurrency, and Digital Currency division, highlights the goal to foster a stable-value digital currency aimed at commercial and transactional use. According to him, deploying PYUSD on Solana further propels this mission.
Wallet users of PayPal and Venmo will benefit from a network-flexible experience as their PYUSD balances remain unified, whether on Solana or Ethereum, enabling smooth transfers based on user preference.
Early adopters like Crypto.com, Phantom, and Paxos are facilitating PYUSD on Solana, promising an effortless journey from regular currency to digital currency for both individual users and businesses.
Aligning this initiative with PayPal's overarching objective of driving cryptocurrency adoption to the mainstream, the company is focusing on minimizing transaction costs and securing user-friendly money transfers.
Solana has emerged Solana dominates as the blockchain most frequently chosen for stablecoin transactions. Analytical data from Artemis indicates Solana's stablecoin trade volume reached a staggering $1.5 trillion in the past year, outpacing Ethereum's $885 billion for the same timeframe.
Despite its strengths, the Solana network has experienced challenges, primarily due to persistent outages affecting network performance.
To mitigate these reliability issues, Solana plans to introduce the 'Firedancer' upgrade, a strategy intended to boost the network's dependability and scalability in the upcoming months.
Initially launched in August 2023, the stablecoin PYUSD was born out of a collaboration with Paxos Trust Company, initially debuting on the Ethereum blockchain as an ERC-20 token.
Blockonomi’s Editor-in-Chief and Kooc Media founder, from the UK, passionately supports open-source software, blockchain tech, and the vision of a free and equitable internet.
