PayPal launched its USD-pegged stablecoin, PYUSD, on the Solana blockchain after an initial launch on the Ethereum in 2023.
This will make PYUSD more capable in commerce, with faster and cheaper transactions on Solana.
Solana, the fifth-ranked coin by market capitalization, gained rapidly on Ethereum in providing developers with a high-speed network to support everything from games to decentralized finance dApps.
PayPal source data cited in an update from Artemis, a blockchain analytics platform, said Solana is the most used blockchain for stablecoin transfers.
Be fast and be cheap
The company, on the other hand, focused on the speed and cost efficiency of Solana as features that make PYUSD a good network for it.
The company further stated that the speed of PYUSD would drive up its adoption rate.
The idea, said Jose Fernandez da Ponte, senior vice president at PayPal, was the commerce-focused digial currency.
Last year, PayPal issued the PYUSD through the Paxos Trust, and cash equivalents and short-term treasuries back them.
“What motivated PayPal to keep building PYUSD is solving for a stable, online currency, specialized for commerce.”
Conquering new territory, one network at time
In addition to this, the additional idea was that the customers now could buy PYUSD on Venmo.
The company stated that though some of the customers were already able to buy the stablecoin on Venmo, the feature would be rolled out to all the users in the coming weeks.
The stablecoin could easily be purchased through major platforms such as Crypto.com, Coinbase, and Kraken.
What the integration of PayPal across the Solana blockchain space means for the general market is much more interesting.
An example of this is the fact that the general adoption of blockchain by one of the world’s biggest payment processors gives proof for the viability of the blockchain networks when applied generally to mainstream applications.
It may start change towards a wider adoption of digital currencies for everyday transactions.
Keeping up with others
To some extent, implementing Solana would put the choice on other companies also implementing blockchain technologies for their financial use, and changing their strategy.
In the United States, the new accounting standards are likely to be introduced the following year, making it all the more comfortable for companies to hold digital currencies as reserve assets and increase the usage of currencies like PYUSD.
There are still issues such as the high volatility of cryptocurrencies.
It is in the introduction that the push of PayPal to Solana, propelling PYUSD altogether, is a big step for digital coins to integrate into the traditional, mainstream finance systems, and doubling down on blockchain technology.
