Financial technological company PayPal has launched its stablecoin, PayPal USD (PYUSD) on the Solana blockchain. With this development, Solana now marks the second blockchain to integrate PYSUD after Ethereum’s debut a year ago.
PayPal Solana Link To Help PYUSD In Market Push
According to the announcement, the PYUSD lags behind its competitors in terms of adoption despite its name-brand backing. Notably, the PYUSD has a market cap of about $400,000 and 8,600 holders on the Ethereum blockchain. This figure is minute compared to the large followings of its crypto-native rivals, USDT and USDC.
The introduction of PYUSD on Solana could spark new interest in a modestly sized crypto asset that is yet to pick up steam. Solana, a blockchain platform that aims to solve scalability issues is anticipated to help PYUSD with cost and speed that weren’t possible on Ethereum.
Also, the integration with Solana guarantees that PYUSD will maintain a consistent balance in PayPal and Venmo wallets, irrespective of the blockchain used. Accordingly, users can now transfer PYUSD through Ethereum or Solana.
So far, Paxos, Crypto.com, and Phantom are among the first platforms to facilitate the purchase of PYUSD on Solana.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain commented on the update, stating,
“Ethereum works well enough. But if you’re interested in retail payments as we are, basically you need at least 1000 transactions per second, and you need transaction costs in the pennies, not in the dollars.”
PYUSD Sees Increased Adoption
Meanwhile, PYUSD is seeing integrations with major financial institutions. For example, BVNK, a payment infrastructure provider announced earlier that it has integrated the PYUSD stablecoin into its platform.
As a result, businesses can now access PYUSD on BVNK’s payments platform, alongside 14 of the most popular cryptocurrencies, leading stablecoins, and 25 fiat currencies. Additionally, BVNK has direct access to create and remove PYUSD tokens for customers.
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