Solana (SOL) is the newest network to host PayPal’s U.S. dollar-pegged stablecoin, PYUSD, in a move that promises mutual benefits by connecting the token to millions of merchants.
Mutual Collaboration Between Solana and PayPal
According to a recent announcement on social media platform X, PYUSD is now live on the Solana blockchain. This partnership marks a significant milestone as Solana becomes one of the top networks to support PayPal’s stablecoin. This integration is expected to be highly beneficial for both PayPal and Solana, offering millions of users access to the token with enhanced transaction speed and efficiency.
This new integration allows PayPal to leverage Solana’s blockchain to serve over 30 million merchants globally, offering users lower-cost transactions. This marks a significant expansion for the USD-pegged stablecoin, as it ventures beyond the Ethereum ecosystem for the first time.
Expansion of PYUSD Usage
The addition of Solana extends the use of PYUSD as a payment method for everyday purchases, aiming to compete with leading stablecoins like Tether (USDT) and USD Coin (USDC). Since its launch, PayPal USD has continuously evolved, finding new ways to integrate and expand its utility.
Recently, Xoom, PayPal’s cross-border money transfer service, introduced a new funding option allowing U.S. users to finance international transfers using PYUSD. Notably, users can fund eligible transfers to recipients in over 160 countries without paying transaction fees when using PayPal USD.
Leveraging Solana’s Speed and Low Costs
Solana’s integration is expected to positively impact PYUSD’s market outlook. Solana is known for processing over 5,000 transactions per second at a cost of about $0.0025 per transaction. In contrast, Ethereum processes around 15 transactions per second, with fees ranging from $1 to $50 during periods of congestion. This makes Solana a significantly cheaper and faster alternative.
For context, transactions that might take a few minutes and incur higher fees on Ethereum are completed in seconds on Solana. PayPal’s senior vice president of blockchain, Jose Fernandez da Ponte, emphasized that “Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce and payments.”
Enhanced User Experience
With this integration, PayPal and Venmo wallet users will enjoy a seamless, chain-agnostic experience. This means that PYUSD balances will remain unified, regardless of the network holding the assets.
