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PayPal USD Stablecoin Now Also Available on Solana (SOL)

PayPal’s stablecoin, PayPal USD (PYUSD), launched in August 2023, is expanding from Ethereum to the Solana blockchain. PYUSD, pegged 1:1 to the US dollar and backed by cash reserves and US government bonds, aims to enhance commerce and payments. Despite a modest start with a $400 million market cap, the expansion seeks new momentum amid increasing stablecoin competition.




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)

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.