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Solana strikes deal with PayPal to support PYUSD
PayPal announced that its stable currencyPayPal USD (PYUSD), is now supported on Solana blockchain.
This integration leverages Solana’s high-speed, low-cost transaction capabilities, improving the usability of PYUSD 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 PayPal. According to SolanaFM, Solana can handle 1,423 transactions per second (tps), significantly exceeding That of Ethereum 12-15 tablespoons. This capability is critical 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, senior vice president of Blockchain, Cryptocurrency and Digital Currency at PayPal.
Despite past technical problems, Fernandez da Ponte expressed confidence in Solana’s current stability. Sheraz Shere, general manager of payments at the Solana Foundation, said the previous technical problems are now resolved. The most recent interruption in February it lasted only five hours, a significant improvement over previous outages.
To know 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. She noted that fintechs are starting to recognize stablecoins as a product-market fit, referencing Stripe Inc decision to enable stablecoin payments for merchants.
“Fintechs are starting to recognize stablecoins as the product-market solution they have been waiting for,” he said.
At the time of writing, PYUSD It has a market capitalization of $398 million, which is insignificant compared to Tether’s $111 billion. However, stablecoin usage spans cryptocurrency exchanges and decentralized finance, with plans to extend it to retail payments. The emerging markets of Latin America, South-East Asia and Africa are also targeted. PayPal’s Xoom service already facilitates cross-border payments using PYUSD.
To know more: 7 Best Crypto Platforms to Buy PayPal Stablecoins (PYUSD)
However, PayPal’s journey with stablecoins has faced challenges. The company suspended its project in February 2023 due to regulatory scrutiny and received a subpoena from the U.S. Securities and Exchange Commission in November.
“We are cooperating with them and providing the requested information,” assured Fernandez da Ponte.
PayPal’s decision to integrate PYUSD with Solana demonstrates its dedication to improving digital payments. By using Solana’s fast and low-cost transactions, the company can make its stablecoin more efficient and accessible. This partnership represents a big step forward in offering better and more convenient financial services to people around the world.
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