Paxos Expands to Solana Following NYDFS Nod, Widening Stablecoin’s Horizon

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The tokenization and stablecoin platform Paxos has revealed plans to broaden its stablecoin issuance to the Solana blockchain. The company, which oversees the pax dollar (USDP), anticipates that Solana-issued USDP will be publicly available starting Jan. 17, 2024.

Paxos Set to Launch Stablecoin on Solana, Expanding USDP Reach in Crypto Market

On Friday, Paxos revealed that its Solana venture represents the first expansion to a new blockchain, as USDP was initially launched on Ethereum. The New York Department of Financial Services (NYDFS) reportedly endorsed Paxos’ initiative, enabling public access to USDP via Solana by mid-January 2024.

“The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers,” Paxos Head of Strategy, Walter Hessert said on Friday.

In addition to USDP, Paxos has been overseeing the issuance of the stablecoin BUSD until the NYDFS directed the cessation of its creation. Following this directive, a substantial portion of BUSD in circulation has been redeemed over the year. Paxos also collaborates with Paypal to oversee the issuance of Paypal’s newly introduced PYUSD stablecoin.

Currently, USDP is the ninth largest stablecoin in terms of market capitalization, with a circulating supply of 369,946,003 tokens. Bluechip’s stablecoin rankings assign USDP an A- grade, acknowledging its regulatory compliance and emphasis on customer protection, though it notes the stablecoin’s limited adoption in the wider crypto markets.

In the last 24 hours, USDP has seen $3,937,693 in global trade volume, a modest sum compared to the trading volumes of major stablecoins like tether (USDT) at $48.80 billion and usd coin (USDC) at $14.68 billion. According to coingecko.com statistics, Binance is the most active exchange for USDP, with its most traded pairing being with USDT.

Additionally, Paxos disclosed the specific Solana smart contract address for USDP in its announcement. Currently, a mere 69 Solana-based USDP are in existence, with only five transactions recorded. The Solana explorer, Solscan.io, indicates that these token test transfers occurred eight days earlier.

“Paxos’s decision to bring stablecoin issuance to the Solana blockchain will showcase how Solana’s high-performance network and low transaction fees can support regulated financial products and provide leaders like Paxos new ways to scale and innovate,” Raj Gokal, the co-founder of Solana said on Friday.

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