Paxos Receives Approval to Join Solana Blockchain
25 Dec, 2023 ● Vijesti o kovanicama
According to reports, the New York Department of Financial Services (DFS) has given stablecoin issuer Paxos regulatory approval to introduce its products on the Solana blockchain.
Due to DFS restrictions, the company is only currently able to issue its Pax Dollar (USDP) stablecoin on the Ethereum network. On January 17, 2024, Paxos on Solana is expected to make its debut.
As a fiat-collateralized stablecoin, Pax Dollar has a 1:1 backing from the US dollar.
After an “extensive and exhaustive review,” Paxos received a "non-objection" for the USDP's expansion from Ethereum to Solana, according to Fortune.
Walter Hessert, Paxos' head of strategy, made this announcement. Specifically, Solana's internal risk framework was examined.
Hessert refers to Paxos as “the most regulated stablecoin issuer in the world” in reference to the rival companies that power Tether (USDT) and USD Coin (USDC), two stablecoins that are not subject to DFS regulation.
He emphasized, saying, "We are the only company that has been issuing regulated stablecoins at scale—period."
Hessert said that Solana might be a more desirable option for Paxos' partners due to its quicker transaction speeds and cheaper fees than Ethereum, and he suggested PayPal could potentially extend its stablecoin PayPal USD to Solana.
Layer-1 protocol Solana is renowned for its high transaction speed and affordable costs. It can process between 50,000 and 65,000 transactions per second (TPS), which is far more than Ethereum's current 30 TPS capacity.
Although there were numerous outages in 2022, the protocol has had 100% uptime in the recent months.
The head of strategy at Paxos stated that the company is looking for regulatory approval for additional layer-1 and layer-2 blockchains.
Paxos has been growing its global operations in the last few months.
The company revealed on November 16 that Singapore's regulator had given preliminary approval for a new entity aiming to introduce a stablecoin backed by the US dollar.
Additionally, Paxos obtained authorization from the Abu Dhabi regulator to launch stablecoins and provide digital asset services within the emirate.
Sources:
https://cointelegraph.com/news/paxos-gets-ny-green-light-join-solana-blockchain-report
