Paxos Secures NY Regulator's Approval for Expansion to Solana Network

Stablecoin Issuer Paxos Expands to Solana Blockchain

Paxos, a stablecoin issuer, has received approval from the New York Department of Financial Services to expand its operations to the Solana blockchain. This approval is seen as a significant milestone for Paxos’s business, allowing it to move beyond just Ethereum. The company plans to offer its USD-backed stablecoin, USDP, on Solana starting January 17th. Paxos cites the rapid transaction rates and lower transaction fees of the Solana blockchain as reasons for this expansion.

Paxos Aims to Make Stablecoins Accessible

Walter Hessert, Paxos’s head of strategy, views this move as an important step towards making stablecoins more accessible to everyday consumers. He believes that Paxos has set the standard for oversight and issuance in the stablecoin market and integrating USDP with Solana will make it easier for anyone to obtain and use reliable stablecoins.

Paxos’s Regulatory Background

Paxos received the first limited purpose trust charter for digital assets from NYDFS in 2015, and all its operations are supervised by the New York regulator. However, the company has also faced regulatory challenges. Earlier this year, NYDFS ordered Paxos to stop issuing Binance USD, a stablecoin launched in collaboration with Binance.

Solana’s Surging Performance

The native SOL token of the Solana blockchain has experienced a surge of 8.1% in the past 24 hours and a 73% increase over the past month. Additionally, search volume for Solana has risen significantly in recent months according to Google data.

Hot Take: Paxos Expanding to Solana Signals Growth Potential

Paxos’s expansion to the Solana blockchain demonstrates the growing interest and potential in the stablecoin market. By leveraging Solana’s transaction speed and lower fees, Paxos aims to make stablecoins more accessible for everyday consumers. This move also highlights the regulatory oversight and trust associated with Paxos, as it received approval from the New York Department of Financial Services. The surging performance of Solana further adds to the excitement surrounding this expansion.