World renowned payment platform Paypal has launched its stablecoin PYUSD on the Solana blockchain as it looks to expand its share of the stablecoin market.
This is the second blockchain PYUSD will be available on after it was initially launched on the Ethereum ecosystem.
PayPal announced on May 29 that it was adding PYUSD to the Solana blockchain due to some unique features the blockchain possesses that align with PayPal’s standard of user experience.
Features like laser fast transactions and lower fees made the Solana blockchain Paypal’s choice as it seeks to expand the use of its stablecoin for little and daily transactions.
Solana has the ability to process 65,000 transactions per second with fees as low as $0.0025. This is significantly better than Ethereum’s 15 transactions a second with fees as high as 1$ to 50$.
PayPal’s senior vice president of blockchain, Jose Fernandez da Ponte explained the motive behind PayPal’s expansion into the Solana blockchain.
He explained that making PYUSD available on the Solana blockchain furthers PayPal’s mission of enabling a digital currency with a stable value designed for commerce and payments.
The Solana ecosystem has positioned itself as the leading blockchain for stablecoin transfers in the crypto space.
Crypto Analytics platform Artemis reported that the Solana Blockchain processed a stablecoin transfer volume of $1.5 trillion dollars in the last year surpassing Ethereum’s $885 billion over the same period.
The Solana Blockchain is not without challenges as it sometimes experiences intense downtimes called network outages. The last episode occurred on February 9 when the blockchain was down for five hours.
The Solana team are working on an important update to its platform to fix the issue and improve the user experience of Solana Users.
What To Know
- A stablecoin is a crypto asset that was created as an antidote to the high volatility in the crypto market. Stablecoins are designed to have a constant value by having its value pegged to a more stable reserve like the US dollar.
- There are three main Stablecoins in the crypto market, Tether USDT, Circle USDC, and now PayPal’s PYUSD. Tether stablecoin is the most used of the three with over 70% of the stablecoin market. Tether is worth over $111 billion while Paypal’s PYUSD is still worth $272.96 million.
- Paypal launched its stablecoin PYUSD on August 2023 as an ERC-20 token on the Ethereum blockchain. The stablecoin is backed by US dollar deposits, short-term treasury and cash equivalent.
