PayPal’s stablecoin, PayPal USD (PYUSD), is now faster and cheaper to use as it debuts on the Solana blockchain.
PayPal has announced the availability of its PYUSD stablecoin on Solana, which provides users with the choice of multiple blockchains, allowing for increased flexibility and control.
The move beyond the Ethereum ecosystem allows PYUSD users to perform their transactions at a lower cost. Besides, the payment giant seeks to expand the uses of PYUSD stablecoin as a payment method for small and daily purchases with the expansion to multi-blockchain model.
According to the press release, Solana is the most used blockchain for stablecoin transfers. It is known for its combination of low cost and high transaction speed. Since 2022, Solana’s daily transactions have exceeded those on Ethereum. On April 6, 2024, according to a report by CoinGecko, Solana achieved a groundbreaking milestone by processing 91 million transactions in a single day.
The blockchain is also approximately 46 times faster than Ethereum and more than five times faster than Polygon, the leading Ethereum scaling solution, boasting an impressive average of 1,504 transactions per second (TPS).
“The Solana network’s speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous. Continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation.”
Sheraz Shere, GM of Payments at the Solana Foundation
PayPal USD is issued by Paxos Trust Company, which is subject to regulatory oversight by the New York State Department of Financial Services. It launched in mid-2023 as the first stablecoin issued by a large financial company. The token is fully backed by deposits in US dollars, short-term Treasury bonds, and similar monetary equivalents.
The stablecoin can be bought or sold through PayPal, Venmo, and compatible external wallets. This year, PYUSD was first used as the funding instrument for a PayPal Ventures investment in Mesh Connect startup.
