- PayPal’s PYUSD stablecoin now runs on Solana in addition to Ethereum, expanding its reach after the initial Ethereum launch in 2023.
- Solana’s fast and cheap transactions make it ideal for running PYUSD for payment use cases, according to PayPal.
- Venmo users will soon be able to buy PYUSD, with select users already having the option and full rollout coming in the next few weeks.
PayPal today announced that its PayPal USD (PYUSD) stablecoin now runs on Solana after launching on Ethereum last year. This expansion brings significant benefits for commerce use cases according to the payments platform.
Solana’s Speed and Low Fees Make it Ideal for PayPal
Solana is the blockchain behind the fifth biggest cryptocurrency SOL. It aims to compete with Ethereum by providing a faster network for developers to build anything from games to DeFi apps.
Its unique selling point is that it is fast and cheap, so transactions can be processed and settled quickly. PayPal noted this in its announcement, stating “As the most used blockchain for stablecoin transfers, Solana has emerged as the leading blockchain to run tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases.”
Expansion Furthers PayPal’s Goals for Digital Commerce
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto and digital currency group, 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.”
PYUSD is a dollar-pegged stablecoin backed by cash equivalents and short-term treasuries. Paxos Trust Co issues the token. It also runs on Ethereum in addition to Solana.
What is a Stablecoin?
A stablecoin is a type of digital asset pegged to something stable, usually fiat currencies like the dollar. The idea is that crypto users can keep assets on a blockchain but they will not fluctuate in price as much as other assets like Bitcoin.
This expansion brings PayPal’s stablecoin to a new blockchain focused on speed and low fees. It furthers their goals of enabling digital commerce and payments.
