Payment platform PayPal confirmed that its stablecoin is expanding to the Solana network

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Payments platform PayPal has confirmed that its stablecoin is expanding to the Solana network, making PayPal transactions in USD (PYUSD) faster and cheaper.

This announcement comes nine months after the company introduced PYUSD. As Criptonoticias reported, it is an ERC-20 token, that is, developed on the Ethereum network, maintaining price parity with the US dollar.

José Fernández da Ponte, senior vice president of PayPal's Blockchain, Cryptocurrencies and Digital Currency Group, is optimistic about the news. Ensure:

“Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with stable value designed for commerce and payments.”

José Fernández da Ponte, senior vice president of the Blockchain, Cryptocurrencies and Digital Currency group at PayPal

The Solana network stands out for its ability to process large transactions at high speed and low cost, which is an added advantage in commercial applications.

Until now, PYUSD only existed on the Ethereum mainnet, which did not offer the best conditions in terms of economy and speed. Since 2020, Ethereum has attracted a large number of users and therefore congestion has become common.

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According to cryptoanalysis platform Artemis, Solana is currently the most used network for stablecoin transfers. For his part, Sheraz Sher, Payments Executive at the Solana Foundation, pointed out that “the speed and scalability of the Solana network make it the ideal blockchain for new accessible, profitable and immediate payment solutions.”

The downside of Solana compared to Ethereum is stability. Solana had technical problems repeatedly and had to be suspended. In this scenario, the Solana transaction may not process for several hours.

PayPal's digital currency, PYUSD, takes 9 months to enter the cryptocurrencies ecosystem, collaborating with the fiduciary society Paxos for emission. It is supported by depoise in dollars, Tesoro tokens, and short-term and cash equivalents. Despite being a renowned financial company, PYUSD has not had a significant adoption success. One challenge for PayPal is competing in a market dominated by major players like USDT, the stablecoin issued by Tether. PayPal's stablecoin is now attempting to capture new users, a trend that has not occurred yet.