PayPal USD Stablecoin Expands to Solana Blockchain

PayPal Holdings, Inc. has announced the integration of its PayPal USD (PYUSD) stablecoin onto the Solana blockchain, enhancing its usability with faster and cheaper transactions. This move represents a significant step in the convergence of traditional finance and cryptocurrency, providing consumers and merchants with more flexible and efficient payment options.

The integration of PYUSD on the Solana blockchain aims to leverage Solana’s high-speed, low-cost transaction capabilities. Solana, known for its ability to process up to 65,000 transactions per second at costs as low as $0.0025 per transaction, significantly outpaces Ethereum’s 15 transactions per second, which can incur fees ranging from $1 to $50 during periods of network congestion. This substantial difference makes Solana a more practical choice for everyday transactions and small payments, aligning with PayPal’s vision for PYUSD as a stable and efficient payment method.

Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, highlighted the importance of this move. “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments,” he stated. The faster transaction speeds and lower costs offered by Solana are expected to drive broader adoption of PYUSD for various commerce use cases.

PayPal and Venmo wallet users will experience a chain-agnostic approach, where PYUSD balances remain unified regardless of whether the assets are held on Ethereum or Solana. This approach simplifies the user experience, making it easier for consumers to manage their digital currency across different blockchains.

In addition to PayPal and Venmo, platforms like, Phantom, and Paxos will be among the first to offer PYUSD on Solana, providing a seamless fiat-to-crypto experience for both consumers and enterprises. This integration underscores PayPal’s commitment to creating a user-friendly and accessible digital payment ecosystem.

PYUSD, issued by Paxos Trust Company, is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. Paxos, regulated by the New York State Department of Financial Services (NYDFS), ensures that the stablecoin adheres to stringent regulatory standards. This regulatory oversight is crucial for maintaining the stability and trustworthiness of PYUSD as it expands its presence on additional blockchains.

PayPal’s recent acquisition of a limited-purpose trust charter from NYDFS further strengthens its position in the cryptocurrency market. This charter allows PayPal to engage in cryptocurrency custody and stablecoin issuance, potentially enabling the company to take over the issuance and custody of PYUSD from Paxos in the future.

Since its initial launch on Ethereum in August 2023, PYUSD has seen modest adoption compared to its larger competitors, such as Tether and Circle’s USDC. As of now, PYUSD has a market capitalization of approximately $400 million, with around 8,600 holders on Ethereum. In comparison, Tether controls nearly 70% of the stablecoin market, with a market cap of around $111 billion.

Despite its smaller market share, PYUSD’s expansion to Solana is expected to attract more users by offering a more efficient and cost-effective payment solution. Solana’s network, which processed $1.5 trillion in stablecoin transfer volume last year, has already proven to be a robust platform for digital transactions.