Bitrabo Editorial
PayPal, an online payment company, has decided to incorporate its PayPal USD stablecoin (PYUSD) into the Solana (SOL) blockchain, a choice gaining popularity among memecoin issuers.
After successfully launching PYUSD on the Ethereum (ETH) blockchain and integrating it into PayPal’s Venmo P2P service, the company has now opted to join Solana due to its speed and cost-effective transaction fees as reported by Bloomberg.
Enhancing PYUSD’s Presence in the Memecoin Market
The high transaction processing speed of Solana, currently at 1,423 transactions per second according to SolanaFM, appealed to PayPal compared to Ethereum’s 12 to 15 tps.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of blockchain, cryptocurrency, and digital currency, stressed the importance of high transaction volumes in retail, making Solana an excellent fit for sustained operations.
Solana has experienced increased trading activity, particularly driven by memecoins like Slerf and Boom of Meme, indicating a strategic move by PayPal to tap into the growing memecoin market.
While PYUSD primarily sees activity on crypto exchanges and within decentralized finance, PayPal aims to extend its reach to retail transactions and emerging markets in Latin America, Southeast Asia, and Africa.
In April, PayPal enabled Xoom, its cross-border money transfer service, to support international transfers using dollars converted from PYUSD.
PayPal’s Multi-Blockchain Approach for PYUSD Integration
Despite facing regulatory challenges and temporary pauses in its stablecoin initiatives, PayPal remains committed to working with authorities like the SEC to address any concerns.
Confident in Solana’s stability despite occasional technical issues, PayPal believes users can seamlessly transition to Ethereum should disruptions occur.
Furthermore, PayPal intends to explore additional blockchain options for PYUSD integration, aligning with its strategy to operate the stablecoin across various chains.
The move into the stablecoin sector by traditional payment companies, such as Stripe Inc. enabling online stablecoin payments for its merchants, illustrates the increasing interest in digital assets by these institutions.
Currently, SOL is trading at $168, marking a 1% increase in the last 24 hours and a 24% rise in the past month.
Image source: Shutterstock, chart from TradingView.com