PayPal announced that its Paypal USD or PYUSD stablecoin is now running on Solana.
The payment platform said in a recent announcement that that move would bring significant benefits for commerce use cases.
Solana is the blockchain network behind SOL, the fifth biggest cryptocurrency by market cap. It aims to compete with Ethereum by giving a faster network for developers to build anything from games to DeFi or decentralized finance apps.
PayPal noted in its announcement that transactions can be processed settled quickly in its unique selling point is that it is fast and cheap.
The announcement highlighted that Solana, the most used blockchain for stablecoin transfers according to data from blockchain analytics platform Artemis, has emerged as the leading blockchain for running tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases.
Senior vice president of blockchain, crypto, and digital currency group of Paypal, Jose Fernandez da Ponte added that making PYUSD available on the Solana blockchain furthers their goal of enabling a digital currency with a stable value designed for commerce and payments.
Cash equivalents and short-term treasuries back PYUSD. It is also a dollar-pegged stablecoin. Last year, PayPal launched PYUSD. Paxos Trust Co. issued the token. It also runs on Ethereum.
A stablecoin is usually fiat currencies like the dollar. It is a type of digital asset pegged to something stable. The idea with a stablecoin is that crypto users can keep on assets on a blockchain. Nonetheless, as much as other assets like Bitcoin, they will not jump up and down in price.
Users are already able to buy the stablecoin on top exchanges. This includes, Coinbase, as well as Kraken.