PayPal's PYUSD stablecoin is now available on Solana, offering hidden transfers for privacy and taking advantage of Solana's programmability and compliance benefits.

In recent cryptocurrency news, PayPal announced its PYUSD stablecoin project, initially launched on Ethereum, is now available on Solana. This expansion includes a new feature: hidden transfers.

Excitement for PYUSD in the Solana Ecosystem

According to a May 29 Solana blog post, PYUSD's hidden transfers will enable regulatory visibility while providing transaction privacy for consumers. Bitcoin expert Udi Wertheimer noted on X that this feature, similar to one long-discussed by Bitcoin developers, will now be available to PayPal users first.

Mert Mumtaz, CEO of Helius Labs, stated that PayPal's expansion to Solana wasn't solely for speed but also because Solana supports native hidden transfers and token programmability, making a significant impact on how transactions are handled.

Solana's programmability allows for specific programs to be called during token transfers, enhancing wallet control over assets. Solana's token extension standard, compatible with the SPL token standard, offers compliance frameworks, reducing development and testing time, and providing ready-to-use institutional capabilities. The Solana Foundation highlighted that these token extensions enable PYUSD to integrate with any compatible wallet, exchange, or library, extending beyond just the PayPal ecosystem.

PYUSD, launched in August 2023 and primarily backed by U.S. Treasury Reverse Repo Agreements, has seen its circulating supply increase by 50% since the beginning of the year, with a 24-hour trading volume of about $18 million. Previously only available on Ethereum, PYUSD's total circulation is around $400 million, with $5 million currently on Solana.