Online payment company PayPal is set to integrate its stablecoin PayPal USD (PYUSD) into the Solana (SOL) blockchain, which has become an increasingly preferred option. Memcoin exporters.
The move follows the successful launch of PYUSD on the Ethereum (ETH) blockchain and its subsequent addition to PayPal's peer-to-peer (P2P) payment service. According to According to Bloomberg, the decision to join Solana was driven by the speed of the blockchain and low transaction fees.
Expanding PYUSD's reach into the Memecoin market
Solana's transaction processing capabilities currently stand at 1,423 Transactions per second (tps) According to SolanaFM, PayPal has been attracted to the blockchain. In comparison, Ethereum processes around 12 to 15 points per second.
José Fernández da Ponte, senior vice president of PayPal's blockchain, cryptocurrency and cryptocurrency group, stressed the need for sustainable high transaction volumes in retail, positioning Solana as an “ideal candidate.”
Solana saw a surge in trading volume, reaching its highest levels in two years. Memecoins like Slerf, Boom of Meme, Snap, and Dogwifhat have been up and running. Decentralized exchange Activity on the blockchain, in line with the payment company's move to explore new opportunities in the emerging memecoin market.
According to Bloomberg, while most of PYUSD's activity occurs on cryptocurrency exchanges and within decentralized finance, PayPal is looking to expand its use to include retail payments and emerging markets in Latin America, Southeast Asia, and Africa.
In April, PayPal enabled Xoom, a cross-border money transfer service, to facilitate international transfers using dollars transferred from PYUSD.
Multi-Blockchain Strategy for PayPal's PYUSD Integration
It is worth noting that PayPal faced Regulatory audit It temporarily halted its stablecoin efforts in February 2023. The company also received a subpoena from the SEC's Enforcement Division in November regarding its stablecoin operation.
However, Fernandez da Ponte confirmed that PayPal is cooperating with the SEC and providing the information required to address any concerns.
Despite technical setbacks, incl mentioned Due to network slowdowns and outages, PayPal is confident in Solana's stability. PayPal believes that users can easily switch to Ethereum In case of any disturbances.
Additionally, the online payment company intends to explore additional blockchains to integrate PYUSD, which is in line with its original plan for a cross-chain stablecoin.
The company's entry into the stablecoin space reflects the growing interest of traditional payment companies in digital assets. The recent decision by Stripe Inc. Enabling online stablecoin payments to its merchants reinforces this trend.
At press time, SOL is trading at $168, up more than 1% in the past 24 hours and 24% in the past month alone.
Featured image from Shutterstock, chart from TradingView.com
