PayPal Adds PYUSD Stablecoin to the Solana Network

PayPal announced the launch of its stablecoin PYUSD on the Solana network. This decision was made due to the high speed and low fees of the Solana blockchain, as confirmed by the company’s management. Jose Fernandez da Ponte, senior vice president of digital assets at PayPal, said the expansion of PYUSD on Solana furthers the company's mission to create a stable value digital currency for commerce and payments.

In comments to Bloomberg, Da Ponte emphasized that retail requires about a thousand transactions per second, making Solana an ideal choice. He noted that Ethereum, on which PYUSD was originally launched, is not capable of supporting such throughput. Solana was chosen due to its customer convenience and high security standards when processing large transfers.

According to Chainspect, the Solana network speed is 628 transactions per second, with a maximum of 1624 transactions per second. These indicators place Solana in second place in the blockchain ranking in terms of transaction speed. While Ethereum is in 12th place with 13.74 transactions per second and a maximum value of 62.34.

Paxos, a PayPal technical partner, announced plans to release supported stablecoins on the Solana network back in December 2023. This step was a logical continuation of PayPal's strategy to expand the functionality of PYUSD and improve the user experience through the introduction of innovative technologies.

The launch of PYUSD on the Solana network marks an important step in PayPal's digital payments development. High transaction speeds and low fees make Solana an attractive platform for commercial transactions. The move also underscores PayPal's commitment to innovation and adaptation to the needs of today's digital asset market.