At the Consensus 2024 conference, PayPal Holdings, Inc. announced May 29 that it will expand its PayPal USD stablecoin (PYUSD) to the Solana blockchain.
PayPal’s goal is to increase transaction speeds and reduce costs, providing users with greater flexibility and control. Solana’s fast and low-cost infrastructure will be used for the integration.
PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company regulated by the New York State Department of Financial Services. U.S. dollar deposits, U.S. Treasury bonds and similar cash equivalents fully secure the reserves for PYUSD.
Known for its ability to process multiple transactions quickly and cheaply,Solana provides benefits for commercial applications. According to data from blockchain analytics platform Artemis, Solana has become the leading blockchain for stablecoin transfers.
Integration with Solana will increase the speed and scalability of PYUSD transactions, making them more accessible, cost-effective and immediate.
“The speed and scalability of the Solana network make it an ideal blockchain for new payment solutions that are accessible, cost-effective and immediate,” noted Sheraz Shere, CEO of payments at the Solana Foundation. “The continued adoption of solutions by industry participants such as PayPal is helping to make next-generation fintech innovation a reality.”
PayPal and Venmo wallet users will experience a unified PYUSD balance regardless of blockchain.
In addition, Crypto.com, Phantom and Paxos are among the first platforms to support PYUSD purchases on the Solana platform, facilitating seamless exchanges for cryptocurrencies for both consumers and businesses.
PayPal removes NFT purchase protection program
PayPal recently removed purchases using non-convertible tokens (NFTs) from its Purchase Protection Program, which began May 20. The change excluded NFT transactions from eligibility under the program, specifically transactions over $10,000.01 or under $10,000 if not deemed unauthorized.
Despite PayPal’s previous efforts to integrate NFT transactions into its platform, allowing users to buy, sell and store NFT transactions, the amendment reflects a change in their approach due to changing interest and participation in the NFT market.
The NFT market has shrunk significantly, sales volume has declined, and major platforms such as GameStop have closed their NFT markets due to regulatory uncertainty.
