PayPal chooses Solana to expand PYUSD stablecoin beyond Ethereum
Share this article
PayPal has announced that it has chosen the Solana blockchain to expand its stablecoin PayPal USD (PYUSD), marking the company's first step beyond the Ethereum ecosystem.
This integration aims to enable users to conduct transactions at a lower cost and focus on PYUSD as a payment method for day-to-day purchases. The announcement comes as Solana's SOL token moves to become the fifth largest crypto by market capitalization, with Franklin Templeton estimates suggesting that Solana is set to become the third largest crypto asset behind Bitcoin and Ethereum.
Jose Fernandez da Ponte, senior VP of PayPal's blockchain division, said the integration of Solana Blockchain for PYUSD will provide a “faster, easier and cheaper payment method” to enhance consumer and merchant experiences in the emerging digital economy.
Solana's blockchain technology can process 65,000 transactions per second at a low cost of $0.0025. Compared to Ethereum, it can handle approximately 15 transactions per second with fees ranging from $1 to $50 (during peak periods, high gas fees). CoinGecko recently published a study claiming that Solana's average TPS is 46 times faster than Ethereum.
This means that based on these numbers, transactions on Solana can be completed in less than a minute, while the same transaction on Ethereum can take several minutes. In particular, the use of Solana as a network for stablecoin transfers has increased over the past year, according to research by Artemis.
According to PayPal, its users will join Venmo Wallet users in a chain-agnostic experience for PYUSD, meaning their stablecoin balance will be the same regardless of the network the assets are held on. This seamless integration ensures that users can easily manage their stablecoin funds without worrying about the blockchain infrastructure.
Despite its advantages, the Solana blockchain faces challenges primarily related to frequent network outages. The most recent incident occurred in early February, when transactions were down for about five hours. To address these issues and improve Solana's overall reliability and scalability, an update called Firedancer is slated for release in the coming months.
Share this article
The information on or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of any information on or accessible from this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
Crypto Briefing may include articles with AI-generated content created by Crypto Briefing's own proprietary AI platform. We use AI as a tool to deliver fast, useful and actionable information without losing the insight – and control – of experienced crypto natives. All AI-added content is carefully reviewed, for accuracy, by our editors and writers, and we always draw from multiple primary and secondary sources to create our stories and articles.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
