At Consensus 2024, PayPal Holdings, Inc. announced the expansion of its stablecoin, PayPal USD (PYUSD), to the Solana blockchain to enhance transaction speeds and reduce costs. This integration leverages Solana’s high-speed and low-cost infrastructure.

Key points from the announcement include:

1. Integration with Solana: Solana’s capabilities for processing numerous transactions quickly and affordably make it an ideal platform for PayPal’s commerce use cases. The integration aims to make PYUSD transactions faster, more scalable, and cost-effective.

2. Issuance and Backing of PYUSD: PayPal USD is issued by Paxos Trust Company and is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, regulated by the New York State Department of Financial Services.

3. User Experience: Users of PayPal and Venmo wallets will have a unified balance of PYUSD, irrespective of the blockchain. Platforms like Crypto.com, Phantom, and Paxos will support the purchase of PYUSD on Solana, providing a seamless fiat-to-crypto experience.

4. Statements from Industry Leaders: Sheraz Shere, GM of Payments at the Solana Foundation, highlighted Solana’s speed and scalability as crucial for new, cost-effective, and instantaneous payment solutions. The integration with PayPal is seen as a step toward the next generation of fintech innovation.

5. Changes to PayPal’s NFT Policy: PayPal has removed non-fungible token (NFT) purchases from its purchase protection program as of May 20. This change excludes NFTs from eligibility under the program, especially transactions above $10,000.01, reflecting a shift in approach due to the declining NFT market and regulatory uncertainties.

In summary, PayPal’s integration of PYUSD with Solana aims to improve transaction efficiency and user experience while adapting to changes in the broader digital asset market.