PayPal's United States dollar-pegged stablecoin, PYUSD, has gone live on the Solana blockchain, marking a significant milestone for the token's expansion beyond the Ethereum ecosystem.

Mutual Collaboration

The integration of PYUSD on the Solana network is a mutually beneficial move for both PayPal and Solana. It provides PayPal with the opportunity to leverage Solana's speed and low transaction costs to serve more than 30 million merchants globally, while offering users faster and cheaper transactions. This collaboration also expands the utilization of PYUSD as a payment method for small and daily purchases, as PayPal continues to evolve and compete with dominant stablecoin alternatives like Tether (USDT) and USD Coin (USDC).

Xoom's New Funding Option

Xoom, PayPal's cross-border money transfer service, recently launched a new funding option that allows U.S. users to finance international transfers using PYUSD. Users are exempted from paying any transaction fees when using PayPal USD to fund eligible transfers to recipients in over 160 countries.

Leveraging Solana's Advantages

Solana's high transaction speed and low costs make it an attractive option for PYUSD. The blockchain can process over 5,000 transactions per second at a cost of only about $0.0025, compared to Ethereum's 15 transactions per second with higher fees ranging from $1 to $50 during periods of congestion. This means that transactions that could take a few minutes to process on Ethereum at a higher cost would happen on Solana in a matter of seconds.

Chain-Agnostic Experience

With PYUSD now available on the Solana Blockchain, PayPal and Venmo wallet users will get to enjoy a chain-agnostic experience. This means that PYUSD balances will be unified regardless of the network holding the assets, providing users with a seamless experience across different blockchains.

Significance for PYUSD and Solana

The integration of PYUSD on the Solana network is a significant milestone for the stablecoin's expansion and adoption. It also highlights the growing importance of Solana in the cryptocurrency ecosystem, as it continues to attract major players like PayPal. This collaboration is expected to have a positive impact on the market outlook for both PYUSD and Solana.