- Paxos received approval from NYDFS to expand its stablecoin offerings to Solana
- Paxos will launch USDP, its USD-backed stablecoin, on Solana on January 17th to leverage Solana’s speed and low fees
- Approval demonstrates heightened regulatory scrutiny for Paxos but validates Solana as an enterprise-ready blockchain
Paxos, a stablecoin issuer, has received approval from the New York Department of Financial Services (NYDFS) to expand its offerings to the Solana blockchain. This approval represents a significant milestone for Paxos’s business evolution according to the company.
Paxos’ Plan to Launch USDP on Solana
Paxos plans to launch USDP, its USD-backed stablecoin, on the Solana blockchain on January 17. The company said Solana’s rapid speeds and low fees make it an attractive blockchain for consumers.
Walter Hessert, Paxos’s head of strategy, said integrating USDP with Solana will make stablecoins more ubiquitous and easier to use for everyday consumers. Paxos aims to set the standard for regulatory compliance and oversight in the stablecoin market.
NYDFS Regulation of Paxos
According to a report from Fortune, Paxos received the first limited purpose trust charter for digital assets from NYDFS in 2015. As a result, all of the Paxos operations are supervised by the regulator.
Earlier this year, NYDFS ordered Paxos to stop issuing Binance USD stablecoin after it launched in partnership with Binance in 2019. This demonstrates the heightened scrutiny Paxos faces from NYDFS.
Recent Surge in Interest for Solana
Solana’s native SOL token has surged over 80% in the last 24 hours on the news. SOL is up over 70% in the past month as interest in Solana has grown.
Google searches for “Solana” have jumped 250% from early October to December, showing increasing public curiosity.
The approval from NYDFS represents a big vote of confidence for Solana. Paxos’s integration of USDP will bring more visibility and real-world usage to the blockchain.
Conclusion
The expansion to Solana is an important milestone for Paxos as it aims to make stablecoins more accessible. It also validates Solana as an enterprise-ready blockchain capable of handling major stablecoin transactions. Despite heightened regulatory scrutiny, Paxos continues to innovate in the digital asset space.
