Stablecoin issuer Paxos expands into Solana blockchain

Recently, stablecoin issuer Paxos just received approval from the New York Department of Financial Services (DFS) to expand its business to the Solana blockchain.

Paxos Chief Strategy Officer Walter Hessert said that after careful and comprehensive consideration, Paxos decided to expand the stablecoin Pax Dollar (USDP) from Ethereum to Solana. The Paxos product is expected to run on Solana on January 17, 2024.

It is worth noting that since it stopped issuing the stablecoin BUSD, Paxos has only allowed the issuance of the stablecoin USDP on the Ethereum network due to DFS restrictions.

*Peace Dollar It is a stable currency pegged to the US dollar at a ratio of 1:1.

Walter Hessert declared Paxos “the most highly regulated stablecoin issuer in the world” following DFS approval to expand operations – marking the latest step in Paxos’ growth path. This implies that the company’s competitors, such as Tether (issuer of stable currency USDT), Cirle (issuer of stable currency USDC)… are not regulated by DFS.

“We are the only company issuing regulated stablecoins at scale.”

Walter Hessert – Chief Strategy Officer, Paxos

In addition, Walter Hessert also revealed the reason why Paxos chose to expand to Solana. This is because Solana has faster transaction speeds and lower fees than Ethereum. Additionally, he predicted that Solana could become a more attractive option for Paxos partners, with even PayPal extending its stablecoin PayPal USD (PYUSD) to Solana.

It is understood that Solana is a layer 1 protocol with fast transaction speed and low cost. Solana can handle approximately 50,000 to 65,000 transactions per second (TPS), far exceeding Ethereum’s current capacity of approximately 30 TPS. The protocol faced multiple disruptions in 2022 but has been running at 100% for the past few months.

Solana’s raw transactions per second on December 22, 2023.Source: Solana Compass

The SOL price has also grown extremely strongly in recent days, hitting a new 2023 high of $118 – a return to the SOL era before the Terra “disaster”. As of this writing, SOL has seen a slight correction and is trading around $110.

SOL Price Volatility Candlestick Chart.

Currently, Paxos is seeking regulatory approval for other layer 1 and layer 2 blockchains in addition to expanding into Solana.

In addition to Paypal USD, Paxos also plans to launch a similar “white label” stablecoin

Over the past few months, Paxos has expanded its international operations. On November 16, the company established a subsidiary Paxos Digital Singapore Pte in Singapore with the aim of issuing new US dollar-backed stablecoins. Paxos has also received approval from Abu Dhabi regulators to issue stablecoins and conduct digital asset offerings in the emirate.

Current SOL Price

VIC encryption compilation

related news:

Paxos confirms responsibility for $500,000 in erroneous Bitcoin transactions

Uncovering the factors that “informed” the U.S. government of the Paxos-BUSD case

U.S. authorities asked Paxos to stop issuing BUSD because it suspected the stablecoin was a security