PayPal has launched its PYUSD stablecoin on the Solana blockchain to capitalize on the network’s high-speed and low-cost transactions.
The announcement on Wednesday marks PayPal’s first foray beyond the Ethereum network, where PYUSD was originally introduced.
The integration, made possible through collaborations with Crypto.com, Phantom, and Paxos—the issuer of PYUSD—aligns with PayPal’s long-term strategy to strengthen its position in the cryptocurrency market.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto, and digital currencies, views this expansion as a step in the company’s decade-long journey in the crypto space.
“Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments,” he said.
Solana has recently been in the public spotlight, particularly for its ability to handle high throughput brought on by memecoins, as well as the recent wave of celebrity tokens from the likes of Iggy Azalea and Caitlyn Jenner.
The blockchain’s high rate of transactions per second at a fee of approximately US$0.0025 presents an alternative to Ethereum’s 15 transactions per second and higher costs.
This advantage is anticipated to make PYUSD a more practical choice for everyday and minor transactions.
Although no new products have been introduced following the expansion, PayPal is investigating potential applications for PYUSD, including its cross-border payments service, Xoom.