PayPal’s USD stablecoin, issued by Paxos, is officially live on the Solana blockchain. This has been done as part of an initiative to leverage Solana’s high throughput and cost-effectiveness to be able to support over 30 million merchants. Accordingly, users will be in a position to carry out stablecoin transactions that will be fast and secure.
Key Highlights:
- Platform Choice: The choice of Solana as the platform of choice was based on cost-effectiveness, high throughput, and speed of settlement, in addition to its token extensions, which provide more functionality for compliance.
- Mission: Through making PYUSD available on Solana, the mission of creating a stable digital currency that is designed for commerce and payment is furthered.
- Ecosystem Support: The fact that financial institutions like Visa, WorldPay, and Stripe are built on Solana is a show that its community is a strong and resilient one and has the capability to scale onchain projects.
Reasons for Choosing Solana:
- Cost-Effectiveness: Solana being a low-transaction-cost platform is best suited to process large volumes of stablecoin transactions.
- High Throughput and Speed: Being able to settle thousands of transactions per second is a key requirement to support the high throughput.
- Token Extensions: By having these extensions, it enhances compliance functionalities, as it is easier to integrate and comply with regulatory requirements.
Further Reading:
In order to learn more about why PayPal would choose to build on Solana, follow their open letter by following this link: PayPal’s Open Letter on Building on Solana.
By building their platform using the blockchain, PayPal and Paxos have made huge strides toward realizing a new vision of a stable digital currency to revolutionize commerce and payments.
