On 29 May 2024, PayPal Holdings, Inc. (NASDAQ: PYPL) announced at Consensus 2024 that its stablecoin, PayPal USD (PYUSD), is now available on the Solana blockchain. This move aims to make PYUSD transactions faster and cheaper for consumers, enhancing the usability of PayPal’s stablecoin.
The integration of PYUSD on the Solana blockchain is significant due to Solana’s reputation for handling a high volume of transactions quickly and at low costs. According to data from blockchain analytics platform Artemis, Solana is the most used blockchain for stablecoin transfers. Its efficiency and low transaction fees make it an ideal platform for PYUSD, which continues to be utilized for various payment applications.
Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, emphasized PayPal’s ongoing mission to revolutionize digital commerce:
“For more than 25 years, PayPal has been at the forefront of digital commerce, revolutionizing commerce by providing a trusted experience between consumers and merchants around the world. PayPal USD was created with the intent to revolutionize commerce again by providing a fast, easy, and inexpensive payment method for the next evolution of the digital economy.”
He noted that the availability of PYUSD on Solana furthers PayPal’s goal of enabling a stable digital currency designed for commerce and payments.
Sheraz Shere, General Manager of Payments at the Solana Foundation, highlighted the benefits of the Solana network for new payment solutions:
“The Solana network’s speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous.“
He also mentioned that PayPal’s adoption of Solana helps drive the next generation of fintech innovation.
Users of PayPal and Venmo wallets will see PYUSD as a unified balance regardless of the blockchain. This feature simplifies the user experience, allowing easy transfers to external wallets on either the Ethereum or Solana blockchains. In addition to the PayPal and Venmo wallets, Crypto.com, Phantom, and Paxos are among the first platforms to support PYUSD on Solana, providing (hopefully) a seamless fiat-to-crypto experience for both consumers and enterprises.
PayPal USD is issued and custodied by Paxos Trust Company, a fully chartered limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. Reserves for PYUSD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. PYUSD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.
PayPal, Inc. is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. It should be noted that buying, selling, transferring, and holding cryptocurrency with PayPal is not available in Hawaii and where prohibited by law.
