The leading stablecoin issuer Paxos has received regulatory approval to expand its products to the Solana blockchain, which it plans to launch on Jan. 17, 2024. This expansion is a significant step for Paxos, as it competes with other stablecoin issuers like Circle and Tether for market share.
Paxos prides itself on being the most regulated stablecoin issuer in the world, with a strong relationship with the New York Department of Financial Services (DFS). It became the first crypto firm to receive a trust charter from DFS in 2015, and DFS remains the only U.S. financial regulator with a comprehensive framework for crypto.
Paxos issues its stablecoin, USDP, on the Ethereum blockchain due to restrictions from DFS. Unlike its competitors, Tether and Circle’s USD Coin, Paxos works directly with DFS for issuance, which it believes sets it apart and builds trust with its partners.
Paxos has faced challenges in the past, such as its partnership with Binance for the BUSD stablecoin, which was halted by DFS due to concerns about reserves. However, Paxos has continued to grow and has partnerships with major financial players like MercadoLibre, PayPal, and Mastercard.
The approval to expand USDP from Ethereum to Solana involved an extensive review by DFS, although the specific requirements were not disclosed. Solana’s speed and cost relative to Ethereum make it an attractive option for Paxos’s partners, who aim to use stablecoins for cross-border remittances and payments for goods and services.
Paxos’s highest-profile project is its stablecoin PYUSD, issued in partnership with PayPal. The company hopes to gain approval to issue stablecoins on other layer-1 and layer-2 blockchains in the future.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Charles Cascarilla, Walter Hessert |
| Companies | PayPal, MercadoLibre, New York Department of Financial Services (DFS), Coinbase, Gemini |
| Currencies | PayPal USD, US Dollar, Solana, Pax Dollar, BUSD |
| Securities | None |
