PayPal banks on Solana’s stablecoin dominance to bolster PYUSD adoption News ▸ Solana ▸ Stablecoins
PayPal banks on Solana’s stablecoin dominance to bolster PYUSD adoption
Solana is currently the most used blockchain network for stablecoin transactions, according to available data.
2 min read
Updated: May. 29, 2024 at 4:33 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
PayPal said it has expanded its US dollar stablecoin PYUSD to the Solana blockchain network to empower its users with fast, secure, and cheaper stablecoin transactions, according to a May 29 statement.
Solana corroborated this development in a separate statement, adding that PYUSD holders would enjoy a “high throughput and speed of settlement” and a new token extension feature that expands functionality for compliance.
Jose Fernandez da Ponte, PayPal’s Senior Vice President, said:
“Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.”
Experts suggested that the move would aid PYUSD adoption among retail crypto users. Phantom, the most popular Solana-focused crypto wallet service provider, said its users can now buy and transfer PYUSD from their wallets without transaction fees.
Meanwhile, this expansion comes nearly a year after PYUSD’s debut on Ethereum in August 2023. Since then, the stablecoin has recorded modest growth and attracted regulatory attention from the US Securities and Exchange Commission (SEC).
According to CryptoSlate’s data, PYUSD’s market capitalization stood at approximately $400 million as of press time.
Stablecoin powerhouse
Since the beginning of the year, the Solana blockchain has quietly emerged as a dominant stablecoin network thanks to its high transaction speeds and extremely low costs.
PayPal identified this as one of the reasons for its expansion into the blockchain. The company noted that Solana has become the leading platform for tokenized transactions and is ideal for PYUSD as it gains traction in payment use cases among its over 30 million merchants.
Data from blockchain analytics platforms Artemis and Visa confirms that Solana was the most used blockchain for stablecoin transfers in the past month. The stablecoin supply on this layer-1 network has surged to over $4 billion, with Circle’s USD Coin (USDC) making up more than 70% of these assets.
Market observers attribute this growth to the significant influx of capital into the network, driven by the memecoin frenzy and the expanding DeFi activity within the Solana ecosystem.
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Posted In: Solana, Stablecoins
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
PayPal USD
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PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.