PayPal USD Stablecoin Now Also Available on Solana (SOL)

The globally successful online payment service PayPal has been responsible for its own stablecoin with the abbreviation PYUSD since August 2023. PayPal USD was previously limited to Ethereum and is now also coming to Solana.

The stablecoin PayPal USD (PYSD) was launched around nine months ago. With this, PayPal underlined its ambitions to build bridges to the crypto industry. PYUSD has been available in the Ethereum (ETH) ecosystem since its launch and, according to data from CoinGecko, now has a market capitalization of around 400 million US dollars.

Now PayPal is reporting that PYUSD will also be anchored on the Solana (SOL) blockchain

Spokesman Jose Fernandez da Ponte says for PayPal that this step underlines the goal of establishing a digital currency with stable value for commerce and payments. PYUSD is pegged 1:1 to the US dollar and, in cooperation with Paxos, is secured by cash reserves, US government bonds and related financial instruments. Artemis ‘ blockchain data shows that PYUSD only plays a minor role in Ethereum. PayPal now points out that Solana (SOL) is the most used blockchain for transfers of stablecoins.

In the stablecoin sector, Tether (USDT) (currently $111 billion market capitalization) and USDC ($32 billion) are the undisputed market leaders. When PYUSD was launched, there were already reports that it was initially designed for Solana.

In the SOL ecosystem, USDC is the absolute number one, with around $90 billion being moved with USDC every day, according to Artemis . According to a press release, the Solana Foundation welcomes PayPal USD as a sign of progressive adoption by the financial industry and a harbinger of the next generation of innovative FinTech.

Conclusion: PayPal USD expands – competition from stablecoins

PYUSD has so far fallen short of optimistic expectations, and a second launch is being initiated with Solana as a new channel for distribution. One problem for PayPal could be that the company is known for sometimes blocking or freezing customer accounts in a less than transparent manner.

Meanwhile, Ripple (XRP) has also announced that it will soon be releasing its own stablecoin. One thing is clear: stablecoins are considered a growth sector in the crypto industry, and competition is increasing. Tether reported a profit of just over $4.5 billion for the first quarter , which shows that the supposedly boring business of stablecoins can be highly profitable through fees, Bitcoin reserves, and interest income.

PayPal USD will have to continue to work on gaining trust in the crypto scene. The more than 400 million customers that PayPal has worldwide are actually a great basis for a successful stablecoin PYUSD, which is now looking for new momentum from Solana.

__

(Featured image by  Marques Thomas via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us