Stablecoin issuer Paxos has received regulatory approval from the New York Department of Financial Services (DFS) to launch its products on the Solana blockchain. This is a significant development as Paxos has previously only been authorized to issue its Pax Dollar stablecoin on the Ethereum network due to restrictions imposed by the DFS. The debut of Paxos on Solana is scheduled for January 17, 2024.
Pax Dollar is a fiat-collateralized stablecoin, meaning it is backed 1:1 by the United States dollar. The approval from the DFS to expand USDP from Ethereum to Solana came after an extensive review of Solana’s internal risk framework. Walter Hessert, head of strategy at Paxos, emphasized that Paxos is the most regulated stablecoin issuer in the world, distinguishing itself from competitors like Tether USDT and USD Coin USDC, which are not regulated by the DFS.
Solana, known for its high transaction speed and low cost, offers faster transaction speeds and lower costs compared to Ethereum. It can process around 50,000 to 65,000 transactions per second, far surpassing Ethereum’s current capability of about 30 TPS. Despite facing some outages in 2022, Solana has achieved 100% uptime in recent months.
Paxos is also seeking regulatory approval for other layer-1 and layer-2 blockchains, according to Hessert. The company has been expanding its international operations, with preliminary approval from Singapore’s regulator for a new entity intended to launch a U.S. dollar-backed stablecoin and approval from Abu Dhabi’s regulator to issue stablecoins and conduct digital asset services in the emirate.
The approval to launch on Solana opens up new possibilities for Paxos and its partners. Hessert mentioned that Solana’s faster transaction speeds and lower costs could make it an appealing choice for Paxos’ partners, including the possibility of PayPal expanding its stablecoin, PayPal USD, to Solana.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇸🇬 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Walter Hessert |
| Companies | PayPal, New York Department of Financial Services (DFS), Solana, Paxos, Singapore’s regulator, Abu Dhabi’s regulator, Tether USDT, Ethereum, USD Coin USDC |
| Currencies | PayPal USD, US Dollar, Pax Dollar, USDC, Tether |
| Securities | None |
