Today PayPal announced the availability of its PYUSD stablecoin on the Solana blockchain after launching on Ethereum last year. The announcement is unsurprising as Paxos Trust is the issuer of the stablecoin and it launched its own USDP stablecoin on Solana in January.
Given Paxos is regulated as a trust by the New York State Department of Financial Services (NYDFS), every new blockchain it uses requires regulator approval. In contrast, Circle’s USDC is issued under a different legal regime and hence doesn’t have the same restrictions.
Compared to Ethereum, Solana has far lower transaction fees, usually under three cents. Plus, it supports substantially more than 1,000 transactions per second (TPS) compared to Ethereum’s TPS of around 15. However, unlike Ethereum, Solana has had numerous outages.
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