The stablecoin issuer, Paxos, has received approval from a New York regulator to expand its stablecoin issuing service into the Solana Blockchain. Previously, the firm was only limited to the Ethereum blockchain.
Quick Take:
- The NYDFS allows Paxos to issue USDP tokens on the Solana blockchain.
- Paxos plans to benefit from the fast and cost-effective transaction system of Solana.
- Solana (SOL) inches closer to the $100 mark after an impressive week in the market.
Paxos will now launch its USDP stablecoin on the Solana blockchain. The projected date of launch is January 17, 2024. Even though USDP is one of the oldest stablecoins in the crypto market, it has only been issued on the Ethereum blockchain so far.
Therefore, the green signal granted to the stablecoin issuing firm is a significant milestone. Paxos further stated that Solana has a rapid transaction rate with lower transaction fees, which will help the firm increase its consumer reach and utility.
The Head of Strategy at Paxos, Walter Hessert, stated,
“The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers. Paxos has set the standard for oversight, reserve management and issuance in the stablecoin market. By integrating USDP with Solana, we’re making it easier for anyone to get and use the safest, most reliable stablecoins.”
Paxos Marks the Start of a New Era
Paxos is aiming to utilize the efficient and cost-effective model of the Solana Network. It will not only help stablecoin improve its performance but will also assist in improving its market presence.
The New York Department of Financial Services (NYDFS) regulates Paxos Trust Company LLC. The regulator aims to ensure the platform’s integrity and security so that it maintains its 1:1 peg to the US Dollar. Paxos was granted its first limited purpose trust charter for digital assets by NYFDS in 2015.
Moreover, the regulator also regulates the USDC issuer, Circle. Unlike Paxos, Circle is not a trust company, which gives it legal freedom to issue stablecoins on a number of blockchains. USDC is also among the most used stablecoins in the crypto space.
On the other hand, Paxos is also the issuer of another stablecoin, PayPal USD (PYUSD). Along with this, Paxos was the issuer of the Binance stablecoin (BUSD), which has now been suspended. However, both of these stablecoins were also only available on the Ethereum blockchain.
Paxos believes that the regulatory authority is only keen to help the firm build solutions with high security and integrity. Thus, the firm ensures it utilizes blockchain technology in a way that helps improve the global financial system.
The recent market performance of Solana (SOL) has also been a point of discussion in the crypto market. The coin has gained 28% over the last week in its trading price. As a result, it is trading at around $95 with a market cap of over $40.57 billion.
Solana has also taken over BNB to become the fourth largest crypto token in terms of market cap. Therefore, such developments will further help SOL keep up its progressive price trajectory.
