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Fintech giant PayPal is doubling down on its commitment to digital assets. This week, it announced two key developments that signal their intention to be a major player in the payments landscape.
Yesterday, PayPal announced that it struck a deal with high-speed blockchain network Solana to integrate its own stablecoin, PYUSD, onto the Solana platform.
Stablecoins are cryptocurrencies pegged to a real-world asset, like the US dollar, offering price stability while leveraging the advantages of blockchain technology. By adding PYUSD to Solana, PayPal opens its stablecoin to a wider audience, potentially reaching over 420 million existing PayPal users and capitalizing on Solana's fast and scalable network.
"Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments," said Jose Fernandez da Ponte, senior vice president of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal.
This move follows PayPal's initial launch of PYUSD, issued by Paxos, on the Ethereum blockchain in August 2023. The decision to expand to Solana suggests a strategic approach. Ethereum, the leading blockchain for stablecoins, has faced issues with scalability and transaction fees. Solana's faster processing times and lower fees could be attractive to both PayPal and its users for everyday transactions.
TripleA partnership
Secondly, PayPal partnered with TripleA, a Singapore-based payment solutions provider, to integrate PYUSD into their platform. This means merchants using TripleA can now accept PYUSD as a payment option, further expanding the reach and utility of PayPal's stablecoin.
The platform aims "more than double" its payment volumes by the end of 2024 and sees the integration of PYUSD as key to achieving this target.
“With PayPal’s extensive user base, the launch of PYUSD positions them to become a leading force in the stablecoin market. Integrating PYUSD into our payment solutions enhances our ability to offer businesses worldwide cost-efficient, secure, and fast payment options,” Eric Barbier, CEO of Triple-A, said.
PayPal's crypto push is multifaceted. It embraces innovation in payments with faster, cheaper stablecoins, captures a growing market of crypto users, and positions them as a frontrunner in a competitive landscape. Their recent moves, including the Solana integration and TripleA partnership, are positive developments for wider crypto adoption in mainstream finance.
