PayPal Makes Retail Stablecoin Play with PYUSD on Solana

The asset comes with Token Extensions that give it compliance superpowers.

AccessTimeIconMay 29, 2024 at 1:00 p.m. UTC
Updated May 29, 2024 at 4:59 p.m. UTC

Payments giant PayPal’s (PYPL) stablecoin PYUSD is coming to Solana almost a year after first debuting on the Ethereum blockchain.

The launch could bring new interest to a modestly sized crypto asset that hasn’t caught fire despite its name-brand backing. PYUSD has around 8,600 holders on the Ethereum blockchain and a market cap of a tick under $400 million—tiny compared to the largesse of its competitors from Circle and Tether, crypto-native firms.

  • MoonPay and PayPal Partnership Brings 'Better User Experience': MoonPay CEO
    00:56
    MoonPay and PayPal Partnership Brings 'Better User Experience': MoonPay CEO
  • Why MoonPay and PayPal Partnered to Expand Crypto Adoption in the U.S.
    14:12
    Why MoonPay and PayPal Partnered to Expand Crypto Adoption in the U.S.
  • Why USDT Dominates Supply With Lower Transaction Volume
    01:11
    Why USDT Dominates Supply With Lower Transaction Volume
  • Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
    19:02
    Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
  • “Ethereum works well enough,” said PayPal's Senior Vice President of Blockchain, Jose Fernandez da Ponte. "But if you’re interested in retail payments as we are, basically you need at least 1000 transactions per second, and you need transaction costs in the pennies, not in the dollars."

    Beyond cost and speed PYUSD also has new superpowers on Solana that weren't possible on Ethereum. It uses this chain's "Token Extensions'' standards to let merchants make their transfers a little more confidential, for example. It one of a handful of compliance and programmability powers for PYUSD.

    CORRECTION (May 29, 13:26 UTC): Corrects market cap of PYUSD to $400 million from $400,000.

    Edited by Parikshit Mishra.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Danny Nelson

    Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


    Read more about