PayPal Stablecoin PYUSD Is Now Available in the Solana Ecosystem

The key factors in the expansion of PYUSD on Solana were the high speed of processing transfers and low commissions on the network.

Payment giant PayPal’s (NASDAQ:PYPL) stablecoin USD (PYUSD) is now available on the Solana (CRYPTO:SOL) blockchain.

The integration will reduce commission costs for asset transactions.

Solana can handle up to 65k transactions per second starting at $0.0025, while Ethereum can only process 15k at higher fees.

During periods of high network load, commissions reach $0.05 per transaction.

Now, the PYUSD developers have announced the extension of PYUSD to Solana.

This marks the stablecoin’s first step outside the Ethereum ecosystem.

However, Solana has faced serious technical problems in the past, which the developers are actively working on.

Last month, PayPal's stablecoin turned one year old.

CoinDesk covered the key moments in PYUSD's first year in a special report.

Solana is gaining steam in 2024.

Recently, платежная компания Mastercard (NYSE:MA) announced plans to integrate Solana Pay into its payments network.

Now, PayPal is joining the list of mainstream finance companies to adopt Solana.

“Adding support for PYUSD on the Solana network furthers our goal of creating a stable value digital currency for commerce and payments,” said Da Ponte.

Sheraz Sher, CEO of Payments at the Solana Foundation, highlighted the integration of PYUSD and Solana as an example of the adoption of digital assets by traditional finance.

“Many payment companies are starting to recognize stablecoins as market-relevant products,” said Sher.

According to CoinGecko, at the time of writing, PYUSD’s capitalization is $398 million.

This places the asset 12th in the ranking of the largest stablecoins on the market.

PayPal's stablecoin has a daily trading volume of over $17.6 million.

PYUSD was launched last summer and is pegged to the U.S. dollar and issued by Paxos Trust Co. on Ethereum (CRYPTO:ETH).

PayPal has been continuously increasing the presence of its stablecoin in the market.

In April, the payments company added PYUSD to its cross-border payments service Xoom.

This enabled American customers to convert PYUSD into U.S. dollars and send funds to recipients in over 160 countries without paying any fees on the transfers.

However, PYUSD's path has not been without its difficulties.

In November 2023, the U.S. Securities and Exchange Commission (SEC) subpoenaed PayPal.

The regulator had questions regarding the fintech giant's stablecoin.