PayPal has deployed its PYUSD stablecoin on the Solana blockchain, bringing new features like confidential transfers to enhance transaction privacy for consumers while maintaining regulatory compliance.
Previously available only on Ethereum, this expansion allows merchants to ensure transaction amount confidentiality, as detailed in a May 29 Solana blog post.
The added programmability also includes "transfer hooks," which empower PayPal developers to execute custom programs during PYUSD token transfers. This functionality provides wallets with enhanced control over the assets.
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PYUSD was developed on Solana as a fungible token using token extensions (TEs), providing numerous benefits for the stablecoin. These include reduced time required to develop and test apps, enterprise-ready "plug-and-play" capabilities, and greater flexibility.
The Solana Foundation highlighted that the open standards of TEs used to build PYUSD allow developers to easily integrate PYUSD into their apps, experiment with it, and develop additional features on top of it as necessary.
PYUSD was launched in August 2023 and, according to its issuer, Paxos, is backed mainly by US Treasury Reverse Repurchase Agreements. The stablecoin’s current 24-hour trading volume reaches over $18 million.
Overall, the deployment of PYUSD on Solana provides a solution that benefits both developers and consumers.
PayPal has previously demonstrated its commitment to innovation through its collaborative project with Energy Web and DMG Blockchain, which rewards Bitcoin miners for using sustainable energy sources.
