Stablecoin issuer Paxos has received regulatory approval from the New York Department of Financial Services (DFS) to extend its products to the Solana blockchain. This marks a significant milestone for Paxos as it expands beyond the Ethereum network, where it was previously the only stablecoin issuer allowed. The Pax Dollar (USDP) will be launched on Solana on January 17, 2024.
The approval from DFS came after an exhaustive review, granting Paxos a “non-objection” to expand USDP’s presence to Solana. This sets Paxos apart from competitors like Tether (USDT) and USD Coin (USDC), which are not subject to DFS regulation. Paxos is now positioned as a leader among regulated stablecoin issuers.
The decision to launch on Solana was strategic, driven by the blockchain’s faster transaction speed and lower costs compared to Ethereum. With Solana’s capability to process 50,000 to 65,000 transactions per second (TPS), Paxos sees this move as an opportunity to improve its services and attract new partners. PayPal, a major player in the financial services sector, may also consider bringing its stablecoin, PayPal USD (PYUSD), to the Solana blockchain.
Paxos has broader ambitions beyond Solana and Ethereum. The company plans to apply for regulatory clearance for additional layer-1 and layer-2 blockchains, demonstrating its commitment to expanding its presence in the blockchain industry.
Paxos has faced regulatory challenges in the past, including an investigation by DFS related to its partnership with Binance for the development of the BUSD stablecoin. Despite these hurdles, the extension to Solana is expected to positively impact the network’s stablecoin market cap and growth.
Overall, Paxos’ approval to launch its stablecoin on Solana signifies a significant step forward in its expansion efforts and establishes the company as a leader among regulated stablecoin issuers. With Solana’s superior transaction speed and cost-effectiveness, Paxos aims to enhance its services and attract new partners in the dynamic blockchain industry.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Walter Hessert |
| Companies | Tether (USDT), PayPal, Binance, Abu Dhabi authority, EDX Markets, Ethereum, BUSD, Singapore regulator, Solana, USD Coin (USDC), New York Department of Financial Services (DFS), Paxos |
| Currencies | Tether, US Dollar, USDC, Pax Dollar, PayPal USD |
| Securities | None |
