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PayPal today announced that its PayPal USD (PYUSD) stablecoin is now live on Solana.
In Wednesday's announcement, the payments platform said the move would “bring significant benefits to business use cases.”
Solana is the blockchain network behind the fifth largest cryptocurrency by market capitalization, SOL. It aims to compete with Ethereum by providing a faster network for developers to build applications from games to decentralized finance (DeFi).
Its unique selling point is that transactions can be processed quickly because it's fast and cheap – and PayPal mentions this in its announcement.
“As Stablecoin is the most used blockchain, according to data from blockchain analytics platform Artemis, Solana has emerged as the leading blockchain to process tokenized transactions and is suitable for PYUSD as it continues to be used for payment use cases,” the announcement said. .
“Making PYUSD available on the Solana blockchain underscores our goal of enabling a stable value digital currency for trade and payments,” added Jose Fernandez da Ponte, senior vice president of PayPal's Blockchain, Crypto and Digital Currency Group.
PYUSD is a dollar-pegged stablecoin backed by cash equivalents and short-term Treasuries. PayPal launched PYUSD last year and Paxos Trust Co. Removed the token. It also works on Ethereum.
A stablecoin is a type of digital asset tied to something stable – usually currencies like the dollar. The idea behind a stablecoin is that crypto users can hold assets on the blockchain, but they won't jump in value as much as other assets like Bitcoin.
Users can buy stablecoins on top exchanges including Crypto.com, Coinbase and Kraken.
Edited by Andrew Hayward.
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