PayPal expands PYUSD to Solana blockchain for lower-cost transactions
2 min readAt Consensus 2024 on May 29, PayPal Holdings, Inc. announced that it will extend its stablecoin, PayPal USD (PYUSD), to the Solana blockchain. PayPal’s goal is to increase transaction speed and reduce costs to provide users with more flexibility and control.
PayPal USD is issued by Paxos Trust Company, a limited liability trust company regulated by the New York State Department of Financial Services. US dollar deposits, US Treasury securities, and similar payment instruments fully cover the reserves for PYUSD.
PayPal USD has launched on Solana!
Solana, 2nd blockchain to support PYUSD after Ethereum, boasts rapid transactions & low costs, ideal for commerce. Seamlessly connect PayPal accounts for fiat-to-crypto ease.
Solana is known for its ability to process many transactions quickly and inexpensively, thus offering advantages for trading. According to blockchain analytics platform Artemis, Solana has become a leading blockchain for stablecoin transfers.
The integration with Solana will improve the speed and scalability of PYUSD transactions, making them more accessible, cost-effective and instant.
“The speed and scalability of the Solana network make it the ideal blockchain for new payment solutions that are accessible, cost-effective and immediate,” said Sheraz Shere, GM of Payments at the Solana Foundation. “Continued adoption by industry participants like PayPal is helping to realize the next generation of fintech innovation.
Users of PayPal and Venmo wallets will find a consistent PYUSD balance regardless of the blockchain.
Additionally, Crypto.com, Phantom and Paxos are among the first platforms to support the purchase of PYUSD on Solana, enabling both consumers and businesses to make a seamless transition from fiat to crypto.
PayPal removes NFT purchase protection program
PayPal recently removed non-fungible token (NFT) purchases from its Purchase Protection Program, which launched on May 20. The change excluded NFTs from participating in the program, specifically transactions over 10,000.01 USD or under 10,000 USD if they are not deemed ineligible.
Despite PayPal’s previous efforts to integrate NFTs into its platform and allow users to buy, sell and hold NFTs, the change reflects a change in approach given the fluctuating interest and participation in the NFT market: the NFT market has declined sharply, sales numbers have plummeted, and major platforms like GameStop have shut down their NFT marketplaces due to regulatory uncertainty.
