PayPal has launched its own stablecoin called PYUSD on the Solana blockchain. Earlier, PYUSD was only existing on the Ethereum platform. PYUSD is the stablecoin of PayPal and will now have an additional feature known as confidential transfers. This feature enables merchants to hide the amount of money being transferred from the customer’s side while at the same time being visible for regulatory purposes.
PYUSD's market circulation has surged by 50% since the start of the year. Presently, it boasts a daily trading volume of about $18 million. The total circulation of PYUSD stands at roughly $400 million, with $5 million circulating on the Solana blockchain.
PYUSD is a type of cryptocurrency known as a stablecoin since its value is tied to the US dollar, approximately $1. 00 per PYUSD. Launched in August 2023, PYUSD is primarily backed by U.S. Treasury Reverse Repurchase Agreements. The Paxos Trust Company is responsible for issuing this stablecoin. Since the year began, PYUSD's supply has increased by 50%, and it now has a daily trading volume of about $18 million.
Another new feature for PYUSD on Solana is “confidential transfers. ” With this feature, merchants can ensure that the amount of a transaction is not visible to the consumer while the authorities can still monitor it.
PYUSD is now live on Solana, a high-speed blockchain network that supports fast transactions. Solana also has features such as “confidential transfers” and other features such as “transfer hooks,” which offer more control over the tokens.
The token extension standard of Solana, known as SPL, includes a compliance framework that helps to cut down on development and testing time. It is highly versatile and can function as an ‘out of the box’ solution for enterprises.
PYUSD can also be used with any wallet, exchange, library, or anything compatible outside PayPal. Solana has more features including the “transfer hooks. ” These hooks allow certain programs to be called with each token transfer and give more control of the asset to wallets.
Solana’s token system is easy to develop, and it is ready for business application and testing. PYUSD applies not only in PayPal alone but also in other wallets, exchanges, and applications integrated with Solana’s ecosystem.
There are also those in the crypto community who are amazed by how fast PayPal adopted confidential transfers, which have been in discussion for years but have not really applied.
Bitcoin enthusiast Udi Wertheimer noted that developers of the Bitcoin platform have discussed such features for years (for example, confidential transactions) but did not include them. He is quite astonished that it is PayPal that is offering this first.
As stated by Mert Mumtaz, the CEO of Helius Labs, such factors as speed, native confidential transfer and token programmability make Solana an ideal platform for PayPal.
The shift of PayPal to Solana brings innovation such as confidential transfer. It reforms the privacy of the customer as well as addresses the needs of the authorities. PayPal is one of the largest online payment platforms and PYUSD, as a token built on the Solana blockchain benefits from the technological superiority of the Solana ecosystem. As a result, PayPal’s stablecoin PYUSD is on the Solana blockchain with added SPV privacy for transactions and regulation compliance. This change makes PayPal’s digital currency more flexible and fast compared to other forms of payment.
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