PayPal's United States dollar-pegged stablecoin, PYUSD, has officially launched on the Solana blockchain. This significant development marks a major milestone for PYUSD, as it expands beyond the Ethereum ecosystem and offers users a faster and more cost-effective way to make transactions.

Collaboration Boosts PayPal and Solana

The integration of PYUSD on Solana is a collaborative effort between the two companies. This partnership allows PayPal to leverage Solana's speed and low transaction fees to serve over 30 million merchants globally. Additionally, users can now enjoy lower costs for transactions. This move is a significant step forward for PYUSD, as it competes with other dominant stablecoins like Tether (USDT) and USD Coin (USDC).

New Funding Option for Cross-Border Transfers

PayPal's cross-border money transfer service, Xoom, has introduced a new funding option that allows U.S. users to finance international transfers using PYUSD. This new feature exempts users from paying any transaction fees for eligible transfers to over 160 countries.

Solana's Speed and Low Fees

Solana's ability to process over 5,000 transactions per second at a cost of only $0.0025 makes it an attractive platform for PYUSD. In contrast, Ethereum processes only 15 transactions per second, with fees ranging from $1 to $50 during periods of congestion. This means that transactions that could take minutes to process on Ethereum at a higher cost can be completed on Solana in mere seconds.

Unified Chain-Agnostic Experience

PayPal's senior vice president of blockchain, Jose Fernandez da Ponte, emphasized that making PYUSD available on the Solana Blockchain furthered their mission of enabling a digital currency with a stable value designed for commerce and payments. As a result, PayPal and Venmo wallet users will enjoy a unified, chain-agnostic experience, where PYUSD balances are unified regardless of the network holding the assets.