On May 29, 2024, PayPal Holdings, Inc. (NASDAQ: PYPL) unveiled at Consensus 2024 that its stablecoin, PayPal USD (PYUSD), is now accessible on the Solana blockchain. This initiative aims to expedite and reduce the costs of PYUSD transactions for consumers, enhancing the usability of PayPal's stablecoin.

The incorporation of PYUSD on the Solana blockchain holds significance due to Solana's reputation for efficiently handling a large volume of transactions at minimal costs. According to data from blockchain analytics platform Artemis, Solana ranks as the most utilized blockchain for stablecoin transfers. Its efficiency and low transaction fees make it an optimal platform for PYUSD, which remains widely utilized for various payment applications.

Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, underscored PayPal's ongoing commitment to revolutionize digital commerce:

"For over 25 years, PayPal has been at the forefront of digital commerce, transforming commerce by delivering a trusted experience between consumers and merchants globally. PayPal USD was developed with the aim of revolutionizing commerce once again by offering a swift, convenient, and cost-effective payment method for the next phase of the digital economy."

He emphasized that the availability of PYUSD on Solana aligns with PayPal's objective of facilitating a stable digital currency tailored for commerce and payments.

Sheraz Shere, General Manager of Payments at the Solana Foundation, highlighted the advantages of the Solana network for innovative payment solutions:

"The speed and scalability of the Solana network position it as the optimal blockchain for pioneering payment solutions that are accessible, cost-efficient, and instantaneous."

He also noted that PayPal's adoption of Solana contributes to propelling the next wave of fintech innovation.

Users of PayPal and Venmo wallets will view PYUSD as a unified balance, regardless of the blockchain. This feature streamlines the user experience, enabling seamless transfers to external wallets on either the Ethereum or Solana blockchains. Apart from the PayPal and Venmo wallets, Crypto.com, Phantom, and Paxos are among the initial platforms supporting PYUSD on Solana, offering a hopefully seamless fiat-to-crypto experience for both consumers and enterprises.

PYUSD is issued and safeguarded by Paxos Trust Company, a fully chartered limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. Reserves for PYUSD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. PYUSD can be purchased or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.

PayPal, Inc. holds a license to conduct virtual currency business activity from the New York State Department of Financial Services. It should be noted that buying, selling, transferring, and holding cryptocurrency with PayPal is unavailable in Hawaii and where prohibited by law.