Solana’s blockchain now supports PayPal’s PYUSD, offering a new level of efficiency and affordability for digital transactions, as confirmed by both PayPal and Solana officials.
PayPal has expanded the reach of its stablecoin, PayPal USD (PYUSD), by integrating it with the Solana blockchain. This new support allows PYUSD to leverage Solana’s high-speed and low-cost transaction capabilities, which are crucial for various financial applications. Solana’s ability to process 1,423 transactions per second (tps) significantly outpaces Ethereum's 12-15 tps, making it an attractive option for retail transactions that demand high throughput.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency, cited Solana’s efficiency and affordability as primary reasons for the integration. Despite Solana’s past technical issues, Fernandez da Ponte expressed confidence in the network's current stability. Sheraz Shere, General Manager of Payments at the Solana Foundation, assured that previous technical problems have been resolved, highlighting the recent improvement in network reliability.
The integration is part of a broader trend where traditional financial firms are increasingly adopting digital assets. Shere noted that fintech companies are recognizing the value of stablecoins, with examples such as Stripe Inc. also moving toward stablecoin payment solutions. PYUSD, which currently has a market capitalization of $398 million, is expanding its use in crypto exchanges, decentralized finance, and targeted retail payments in emerging markets, including Latin America, Southeast Asia, and Africa. PayPal’s Xoom service already facilitates cross-border payments with PYUSD.
