- PayPal introduces PYUSD on Solana, targeting higher transaction speeds and lower costs essential for retail payments.
- Originally launched on Ethereum, PYUSD moves to Solana to utilize capabilities like enhanced transaction confidentiality for merchants.
PayPal has expanded its stablecoin, PYUSD, to the Solana blockchain, nearly a year after its initial launch on Ethereum. This move aims to spark renewed interest in a crypto asset that has not seen significant uptake despite the backing of a major brand.
Currently, PYUSD has approximately 8,600 holders on Ethereum and a market capitalization of under $400 million.
PayPal USD has launched on @Solana!
Solana, 2nd blockchain to support PYUSD after Ethereum, boasts rapid transactions & low costs, ideal for commerce. Seamlessly connect PayPal accounts for fiat-to-crypto ease.
Learn more: https://t.co/dXpfOxWnNC pic.twitter.com/eTcq4imDso
— PayPal (@PayPal) May 29, 2024
José Fernández da Ponte, PayPal’s Senior Vice President of Blockchain, commented on the functionality of Ethereum, noting that while it performs well, the specific needs of retail payments require more robust capabilities.
“Ethereum works quite well, but for retail payments, as we are interested in, you essentially need at least 1000 transactions per second, and transaction costs in cents, not dollars,” he explained.
The shift to Solana is not only expected to enhance efficiency in terms of speed and costs but also enables new functionalities for PYUSD that were not possible on Ethereum. Thanks to Solana’s “Token Extensions” standards, PYUSD can offer enhanced compliance and programmability features.
Among these is the ability to conduct transfers with greater confidentiality, a significant advantage for merchants seeking to maintain some level of privacy in their transactions.
This expansion by PayPal reflects a significant effort by the company to position itself as a relevant payment in the cryptocurrency space, particularly in leveraging blockchain technology to facilitate efficient and secure transactions in retail.
Choosing Solana as an additional platform for PYUSD underscores the company’s interest in exploring how blockchain innovations can be applied to enhance and expand its digital payment services.
