Paxos Expands to Solana Following NYDFS Nod, Widening Stablecoin’s Horizon
December 23, 2023 | by stockcoin.net
Paxos, the tokenization and stablecoin platform, has announced its plans to expand its stablecoin issuance to the Solana blockchain. With the endorsement from the New York Department of Financial Services (NYDFS), Paxos expects to make Solana-issued USDP publicly available from January 17, 2024. This move represents the first expansion of Paxos’ stablecoin to a new blockchain, as USDP was initially launched on Ethereum. The expansion aims to make stablecoins more accessible and widespread for everyday consumers. Currently, USDP is the ninth largest stablecoin in terms of market capitalization, and this move to Solana is expected to further widen its reach in the crypto market.
Paxos Set to Launch Stablecoin on Solana, Expanding USDP Reach in Crypto Market
Paxos, a tokenization and stablecoin platform, has announced its plans to expand the issuance of its stablecoin, the pax dollar (USDP), to the Solana blockchain. This move represents the first expansion of the USDP stablecoin to a new blockchain, as it was initially launched on Ethereum. The New York Department of Financial Services (NYDFS) has reportedly endorsed Paxos’ initiative, allowing public access to USDP via Solana starting on January 17, 2024.
According to Walter Hessert, Head of Strategy at Paxos, the expansion to support Solana is a significant step towards making stablecoins more accessible to everyday consumers. This move will help to widen the reach of USDP in the crypto market.
NYDFS Provides Endorsement for Paxos’ Initiative
The endorsement by the NYDFS is a crucial development for Paxos’ expansion to Solana. As a regulatory authority overseeing financial services in New York, the NYDFS plays a vital role in ensuring compliance and consumer protection. With their endorsement, Paxos’ initiative gains credibility and regulatory approval, paving the way for the public availability of USDP on Solana.
Paxos’ Stablecoin Platform to Support Solana
Paxos’ stablecoin platform will now extend its support to the Solana blockchain. By leveraging the capabilities of Solana, Paxos aims to provide a high-performance network and low transaction fees, which can support the issuance of regulated financial products like stablecoins. This expansion demonstrates how Paxos is leveraging innovative blockchain technologies to enhance its stablecoin offerings and meet the growing demands of the crypto market.
Paxos’ Stablecoin Offerings
Paxos is the issuer of the pax dollar (USDP), a stablecoin designed to maintain a stable value equivalent to the US dollar. In addition to USDP, Paxos has been overseeing the issuance of the stablecoin BUSD until it was directed by the NYDFS to cease its creation. Paxos also collaborates with Paypal to oversee the issuance of Paypal’s PYUSD stablecoin. These stablecoin offerings provide users with options for stable digital currencies that can be easily transacted and utilized within the crypto market.
USDP Market Capitalization and Adoption
Currently, USDP is the ninth largest stablecoin in terms of market capitalization. With a circulating supply of 369,946,003 tokens, USDP has gained recognition for its regulatory compliance and emphasis on customer protection. However, it still faces limited adoption in the wider crypto markets. USDP’s market capitalization reflects its potential for growth and expansion as it gains more traction in the crypto market.
USDP Trading Volume
In the last 24 hours, USDP has seen a global trade volume of $3,937,693. While this may seem modest compared to the trading volumes of major stablecoins like tether (USDT) and usd coin (USDC), it still demonstrates consistent trading activity. Binance, one of the leading cryptocurrency exchanges, is the most active exchange for USDP, with the most traded pairing being USDT. As USDP expands to Solana, it is likely to attract more trading volume and liquidity, further increasing its market presence.
As part of its expansion to Solana, Paxos has disclosed the specific Solana smart contract address for USDP. Currently, there are only 69 Solana-based USDP in existence, with five recorded transactions. These token test transfers occurred eight days prior to the announcement, indicating the early stages of the Solana-based USDP. As more users and institutions adopt Solana and USDP, the number of Solana-based USDP is expected to grow, contributing to the overall liquidity of USDP.
Solana’s Support for Stablecoin Issuance
Solana’s high-performance network and low transaction fees make it an ideal platform for stablecoin issuance. With transactions that can be settled in seconds and fees that are significantly lower compared to other blockchains, Solana provides a scalable and cost-effective solution for the issuance and transfer of stablecoins. This support from Solana allows Paxos to leverage the advantages of the Solana blockchain and offer a seamless stablecoin experience to its users.
Benefits of Paxos’ Expansion to Solana
The expansion of Paxos’ stablecoin issuance to Solana brings several benefits to the ecosystem. First, it enables easier access to USDP for Solana users, expanding the availability and usability of the stablecoin. Second, it demonstrates the interoperability of stablecoins across different blockchains, showcasing the potential for cross-chain transactions and liquidity. Finally, it drives innovation and competition in the stablecoin market, pushing for advancements in technology and regulatory compliance.
Paxos’ decision to expand the issuance of its stablecoin, USDP, to the Solana blockchain represents a significant milestone in the growth of stablecoin offerings. With the endorsement from the NYDFS and the support of Solana’s high-performance network, Paxos is well-positioned to broaden the reach of USDP in the crypto market. As USDP gains more adoption and traction, it has the potential to become a prominent stablecoin, providing users with a reliable and regulated digital currency option.