PYUSD (the stablecoin created by PayPal) is now available on Solana.
PayPal users can switch from its stablecoin, PYUSD, to Solana by using Crypto.com Phantom, and Paxos.
In an interview with Blockworks, PayPal senior vice president for blockchain, crypto, and digital currencies Jose Fernandez da Ponte said that PayPal is more interested in Solana’s ability to enable payments and peer-topeer money transfers using PYUSD than the stablecoin-based use cases of trading.
PYUSD, a stablecoin built on Ethereum and backed by assets such as dollars and US Treasurys at 1:1 ratio, was launched in August.
Sheraz Shere is the general manager of payment at Solana Foundation. She told Blockworks, “It’s not uncommon for projects to be deployed on Ethereum Mainnet. “there’s a desire to figure out how to scale [the assets] and have them work in a multitude of use cases, we see people coming on Solana.”
Shere pointed out that Visa followed a similar route when it introduced its stablecoin program for Ethereum, before adding Solana capabilities.
Solana is cheaper than Ethereum and has a higher transaction throughput. This makes it a more efficient payment chain.
The launch of Solana does not include any new products, but it has begun exploring the PYUSD payment use cases. PayPal’s Xoom cross-border payment service allows PYUSD transfers for remittances, among other things.
PYUSD still has a relatively small usage within the stablecoin industry.
According to CoinGecko, PYUSD is the 13th largest stablecoin in terms of market capitalization. This is an entry into a market that’s dominated by existing incumbents. USDT, USDC and other stablecoins account for approximately 97% (according to DeFiLlama) of Solana’s activity.
PayPal’s crypto and Blockchain SVP claims that it is taking a long-term approach to adopting crypto.
“We are probably in year four of a 10-year process,” Fernandez da Ponte spoke of PayPal’s cryptocurrency plans.
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