Paxos Expands Stablecoin Issuance to Solana
Paxos, a New York-based stablecoin issuer, has announced its strategic expansion of stablecoin issuance to the Solana blockchain platform. Previously exclusive to Ethereum, Paxos plans to make its USDP stablecoin available on Solana starting January 17, 2024. This move is significant in the competitive stablecoin landscape as rivals like Circle and Tether also vie for market dominance.
Paxos Obtains Approval from New York DFS
Paxos received approval from the New York Department of Financial Services (DFS) to expand USDP from Ethereum to Solana after a thorough examination. However, the duration of the review process has not been disclosed. Walter Hessert, Paxo’s Head of Strategy, stated that this expansion is an important step towards making stablecoins more accessible for everyday consumers.
Paxos’ Regulatory Journey
Paxos became the first crypto firm to secure a trust charter under the digital asset regulatory framework implemented by DFS in 2015. The company received approval to issue its first stablecoin, Paxos Standard, in 2018 and later rebranded it to USDP. Before expanding to Solana, Paxos only issued USDP on Ethereum due to restrictions imposed by the DFS.
Partnerships and Regulatory Scrutiny
In June, Paxos partnered with Mercado Libre to introduce the Pax Dollar (USDP) stablecoin to users in Mexico. In August, PayPal launched the PayPal USD (PYUSD) stablecoin in collaboration with Paxos. However, Paxos faced regulatory scrutiny when it was revealed that the DFS was conducting an investigation related to its involvement with BUSD, a stablecoin created with Binance. This led to a significant revenue loss for Paxos.
Hot Take: Paxos Expands Stablecoin Issuance to Solana
Paxos’ strategic expansion of stablecoin issuance to the Solana blockchain platform demonstrates its commitment to making stablecoins more accessible for everyday consumers. By integrating USDP with Solana, Paxos aims to provide a safer and more reliable stablecoin option. This move positions Paxos in the competitive stablecoin landscape and allows it to tap into the growing market demand. With regulatory approvals and partnerships, Paxos continues to navigate the evolving crypto space while expanding its reach and influence.
By
By
By
By