PayPal's PYUSD Stablecoin Moves to Solana, Introduces 'Confidential Transfers'
Summary:
PayPal has moved its PYUSD stablecoin to the Solana platform from Ethereum and introduced "confidential transfers" to maintain transaction privacy while ensuring regulatory visibility. PayPal's decision to shift to Solana was influenced by Solana's native confidential transfers and token programmability. Additionally, Solana's token extension standard offers multiple benefits, reducing development time and testing, and providing flexibility. The PYUSD stablecoin, backed primarily by U.S. Treasury Reverse Repurchase Agreements and issued by the Paxos Trust Company, has a total circulation of $400 million, with $5 million currently on Solana.
Recently, PayPal announced the deployment of its PYUSD stablecoin on Solana, marking its transition from its previous platform, Ethereum, to allow "confidential transfers." According to a recent Solana blog post, this new feature promises to help merchants maintain transaction privacy while also retaining visibility for regulatory oversight. Known Bitcoiner, Udi Wertheimer commented humorously about this development, comparing it to Bitcoin's long-touted "confidential transactions" that, as of yet, has not been built.
Helius Labs CEO Mert Mumtaz suggested that PayPal’s decision to switch to Solana isn't just about speed but also that Solana natively offers confidential transfers and token programmability directly at the L1 level. He added that such confidential transfers in and of themselves will be a game-changer. Additional functionalities include “transfer hooks,” designed to increase asset control by allowing calling precise programs with each token transfer.
Related: PayPal initiates PYUSD stablecoin to USD conversions for cross-border transfers.
According to PayPal, the compliance-focused SPL token standard offered by Solana's token extension standard could provide a host of benefits for its stablecoin. The package includes cutting down development and testing times, offering enterprise-grade plug-and-play abilities, and flexibility. The Solana Foundation further breaks it down, stating that these token extensions (TE), an open standard, paves the way for PYUSD integration within and outside the PayPal network, adaptable with any compatible wallet, exchange, or library.
Paxos inaugurated the PYUSD in August 2023, which is mainly supported by U.S. Treasury Reverse Repurchase Agreements. Reports from CoinGecko note that the circulating supply has seen a 50% rise since the start of this year, reaching a 24-hour trading volume of around $18 million. Previously available only on Ethereum, the stablecoin issued by Paxos Trust Company has a total circulation of around $400 million, with $5 million currently on Solana, according to Solana’s network explorer.
In other news, the price list of celebrity Caitlyn Jenner's meme coin 'mastermind' has leaked.
Published At
5/30/2024 7:50:22 AM
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