PayPal’s PYUSD Stablecoin deploys Solana due to high performance and low fees

Almost a year after launching on Ethereum, PayPal’s stablecoin PYUSD is being introduced to the Solana blockchain.

This move will allow users to choose from multiple blockchain networks, providing greater flexibility and control over their transactions and holdings.

PayPal brings PYUSD to Solana

According to the official announcement, PayPal highlighted Solana’s ability to handle a massive volume of transactions at high speeds and extremely low costs as a key driver for bringing PYUSD to the network.

With Solana emerging as the leading blockchain for tokenized transactions and the most widely used for stablecoin transfers, according to blockchain analytics platform Artemis, PayPal said the Layer 1 network presents significant advantages for to business use cases.

Commenting on the development, Jose Fernandez da Ponte, Group Senior Vice President Blockchain, Cryptocurrency and Digital Currency, PayPal said:

“PayPal USD was created with the intention of revolutionizing commerce again by providing a fast, easy and inexpensive payment method for the next evolution of the digital economy. Making PYUSD available on the Solana blockchain enhances the our goal to enable a digital currency with a stable value designed for commerce and payments.”

Regulatory hurdles, biased stablecoin market

PayPal became one of the first major US financial firms to launch its stablecoin, PYUSD, last August despite regulatory uncertainties surrounding crypto assets in the country.

The stablecoin aimed to reduce friction in virtual payments by enabling fast value transfers, remittances and international transactions. It was designed to facilitate direct flows to developers and creators, aligning with PayPal’s broader expansion into digital assets alongside other leading brands.

The introduction of PYUSD was welcomed by industry experts and competitors such as Tether CEO Paolo Ardoino. However, later that year, the US Securities and Exchange Commission (SEC) issued a subpoena to PayPal regarding its stablecoin initiative.

In addition to regulatory scrutiny, PayPal’s PYUSD currently faces stiff competition from established players like USDT and Circle USDC, which have market caps of $112 billion and $32 billion, respectively. PYUSD, on the other hand, posted a market cap of around $400 million.

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