PayPal Launches Stablecoin on Solana, Leaving Ethereum Behind

PayPal has announced the launch of its stablecoin, PYUSD, on the Solana blockchain, citing limitations in Ethereum for payment solutions.

José Fernández da Ponte, head of PayPal’s Blockchain, Crypto, and Digital Currencies unit, emphasized Solana’s ability to handle high transaction volumes quickly and affordably.

The official announcement was made on May 29, highlighting Solana’s efficiency in processing transactions. Sheraz Shere from the Solana Foundation praised its speed and scalability, making it suitable for modern payment systems.

In conjunction with the launch, PayPal is hosting the Global PYUSD Portal Hackathon, offering a total of 40,000 PYUSD in prizes. The event will showcase the top winners at the Solana Hacker House in Hong Kong from October 24 to 26, 2024.

Additionally, the TrueX exchange, started by former Coinbase employees, has chosen to utilize PYUSD over USDC. Data indicates that Solana currently holds a slightly larger supply of PYUSD compared to Ethereum.

PYUSD is a stablecoin backed by U.S. dollar reserves, cash equivalents, and Treasury Bonds, maintaining a 1:1 peg to the dollar. It ranks as the fifth largest stablecoin by market capitalization, with approximately $732 million in total value and a trading volume of around $32 million over the last 24 hours.