Solana Blockchain Gains New York Approval with Paxos Joining Crypto World

Paxos Approved for Expansion to Solana

Stablecoin issuer Paxos has reportedly been given the go-ahead by the New York Department of Financial Services (DFS) to launch its products on the Solana blockchain. The debut of Paxos on Solana is slated for Jan. 17, 2024.

The company had previously only been authorized to issue its Pax Dollar (USDP) stablecoin on the Ethereum network, due to the limitations imposed by the DFS. However, after an “extensive and exhaustive review” of Solana’s internal risk framework, Paxos received a “non-objection” to expand USDP from Ethereum to Solana, said Walter Hessert, head of strategy at Paxos.

Pax Dollar is a fiat-collateralized stablecoin, meaning it’s backed 1:1 by the United States dollar. This makes it a great option for those interested in making money with web 3.0 or investing in international crypto. It is also popular among crypto world today enthusiasts who are looking into high crypto coins such as gala crypto coin, elon crypto coin, keep network crypto, and more.

Paxos and Solana: The Future of Stablecoins

According to Hessert, Paxos is “the most regulated stablecoin issuer in the world,” when compared to its rivals—Tether (USDT) and USD Coin (USDC)—which lack regulation from the DFS. “We are the only company that has been issuing regulated stablecoins at scale—period,” he emphasized.

The faster transaction speeds and lower costs of Solana could be a more attractive option for Paxos’ partners, and PayPal could even extend its stablecoin PayPal USD (PYUSD) to the Solana blockchain. Solana is a layer-1 protocol known for its high transaction speed and low cost, able to process up to 65,000 transactions per second, far exceeding Ethereum’s current 30 TPS. Although Solana experienced a few outages in 2022, it has been functioning without interruption for the past few months.

Paxos is also looking for regulatory approval for other layer-1 and layer-2 blockchains. In the past few months, Paxos has been extending its operations internationally. In November, the company was granted preliminary approval from Singapore’s regulator to launch a U.S. dollar-backed stablecoin. Additionally, Abu Dhabi’s regulator approved Paxos to issue stablecoins and provide digital asset services in the emirate.