Online payments company PayPal is set to integrate its stablecoin PayPal USD (PYUSD) into the Solana (SOL) blockchain, which is increasingly becoming the preferred choice for investors. memecoin issuers.
The move follows the successful launch of PYUSD on the Ethereum (ETH) blockchain and its subsequent addition to PayPal’s Venmo 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 the Reach of PYUSD in the Memecoin Market
Solana’s transaction processing capabilities, currently measuring 1,423 transactions per second (tps) according to SolanaFM, attracted PayPal to the blockchain. In comparison, Ethereum processes around 12-15 tps.
Jose Fernandez da Ponte, senior vice president of PayPal’s blockchain, cryptocurrency and digital currency group, highlighted the need for sustained 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 such as Slerf, Boom of Meme, Snap and Dogwifhat have boosted decentralized exchange activity on the blockchain, aligning with the payments company’s decision to explore new opportunities in the emerging memecoin market.
According to BloombergWhile most of PYUSD’s activity takes place on crypto exchanges and as part of decentralized finance, PayPal is looking to expand its use to retail payments and emerging markets in Latin America, Southeast Asia and from Africa.
In April, PayPal enabled Xoom, its cross-border money transfer service, to facilitate international transfers using dollars converted to PYUSD.
Multi-Blockchain Strategy for PayPal’s PYUSD Integration
It should be noted that PayPal encountered regulatory control and temporarily halted its stablecoin efforts in February 2023. The company also received a subpoena from the U.S. Securities and Exchange Commission’s Enforcement Division in November regarding its stablecoin work.
However, Fernandez da Ponte confirmed that PayPal is cooperating with the SEC, providing requested information to address any concerns.
Despite technical setbacks, notably reported slowdowns and network outages, PayPal expresses confidence in the stability of Solana. PayPal believes that users can easily upgrade to Ethereum in the event of disturbances.
Additionally, the online payment company intends to explore additional blockchains for PYUSD integration, which aligns with its initial plan for the stablecoin to operate on multiple chains.
The company’s entry into the stablecoin space reflects traditional payment companies’ growing interest in digital assets. Stripe Inc.’s recent decision to allow stablecoin online payments for its merchants further reinforces this trend.
At press time, SOL was trading at $168, up more than 1% in the last 24 hours and 24% in the last month alone.
Featured image from Shutterstock, chart from TradingView.com
