Paxos to Expand Stablecoin Issuance to Solana Blockchain
Paxos has announced its plans to bring its stablecoin USDP to the Solana blockchain, with public availability expected to start on January 17, 2024. This move marks the first expansion of the USDP stablecoin to a new blockchain, as it was initially launched on Ethereum. The New York Department of Financial Services (NYDFS) has reportedly endorsed Paxos’ initiative, enabling broader access to USDP via Solana.
Creating Ubiquitous Stablecoins for Consumers
Paxos views the expansion of its stablecoin platform to support Solana as an important step towards making stablecoins widely accessible for everyday consumers. The company’s Head of Strategy, Walter Hessert, emphasized this significance in the announcement.
Past and Present Stablecoin Offerings
In addition to overseeing USDP, Paxos had been managing the issuance of the stablecoin BUSD until the NYDFS directed its discontinuation. Paxos also collaborates with Paypal to oversee the issuance of PYUSD. The cessation directive resulted in a significant redemption of BUSD tokens.
Market Position and Rankings
With 369,946,003 tokens in circulation, USDP currently ranks as the ninth-largest stablecoin by market capitalization. It has received an A- grade from Bluechip for its regulatory compliance and customer protection focus. However, wider adoption in the crypto markets remains limited.
USDP Trading Volume and Exchange Activity
In the last 24 hours, USDP has seen $3,937,693 in global trade volume. While this figure is modest compared to major stablecoins like tether (USDT) and usd coin (USDC), Binance is the most active exchange for USDP, with USDT being the most-traded pairing.
Solana Smart Contract Address and Token Test Transfers
Paxos has disclosed the specific Solana smart contract address for USDP, indicating that there are currently only 69 Solana-based USDP tokens in existence with five recorded transactions. These token test transfers took place eight days prior to the announcement.
The Benefits of Paxos’ Move to Solana
Raj Gokal, the co-founder of Solana, sees Paxos’ decision as a demonstration of how Solana’s high-performance network and low transaction fees can support regulated financial products and enable Paxos to scale and innovate further.
Hot Take: Paxos Expanding Aggressively with Solana Integration
Paxos’ move to expand its stablecoin issuance to the Solana blockchain represents a significant expansion in the crypto market. By leveraging Solana’s capabilities, Paxos aims to make stablecoins more accessible to everyday consumers. This move is likely to drive innovation and growth in both Paxos and Solana, showcasing the potential of blockchain technology in the stablecoin space. With the endorsement from NYDFS, Paxos is positioned to gain further credibility and trust in the industry. As the cryptocurrency market continues to evolve, it will be interesting to see how Paxos’ integration with Solana contributes to the wider adoption of stablecoins.
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