PayPal Expands PYUSD to Solana Blockchain for More Affordable Transactions
In a major announcement at Consensus 2024, PayPal Holdings, Inc. revealed its plans to extend its stablecoin, PayPal USD (PYUSD), to the Solana blockchain. The objective behind this move is to enhance transaction speeds and reduce costs, giving users increased flexibility and control. This integration will leverage Solana’s high-speed and cost-effective infrastructure.
PYUSD is issued by Paxos Trust Company, a fully regulated limited-purpose trust company chartered by the New York State Department of Financial Services. The reserves for PYUSD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents.
Solana is well-known for its ability to process a large number of transactions quickly and inexpensively, making it ideal for various commerce use cases. Data from the blockchain analytics platform Artemis indicates that Solana has emerged as a leading blockchain for stablecoin transfers. Through the integration with Solana, the speed and scalability of PYUSD transactions will be enhanced, making them more accessible, cost-effective, and instantaneous.
Sheraz Shere, the GM of Payments at the Solana Foundation, expressed his enthusiasm for the partnership, highlighting how the speed and scalability of the Solana network make it the perfect blockchain for innovative payment solutions. He also emphasized that continued adoption by industry players like PayPal will contribute to the realization of the next generation of fintech innovation.
Users of PayPal and Venmo wallets will enjoy a unified balance of PYUSD, irrespective of the blockchain. Furthermore, platforms such as Crypto.com, Phantom, and Paxos are among the first to support the purchase of PYUSD on Solana, streamlining the fiat-to-crypto experience for both individuals and businesses.
In other news, PayPal recently made changes to its purchase protection program, excluding non-fungible token (NFT) purchases. This change, which came into effect on May 20, means that NFTs are no longer eligible for protection under the program, particularly for transactions above $10,000.01 or those deemed unauthorized. This decision reflects a shift in PayPal’s approach to NFTs, given the fluctuating interest and participation in the NFT market. The decline in the NFT market, with decreasing sales volumes and major platforms like GameStop shutting down their NFT marketplaces due to regulatory uncertainties, has influenced this change.
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