25 December 2023
Paxos, a regulated blockchain platform, broadens its stablecoin operations by integrating with the high-performance Solana blockchain, enhancing accessibility and security for users.
Paxos, a leading regulated blockchain and tokenization infrastructure platform, has announced a significant strategic move to expand its stablecoin issuance to the Solana blockchain. This development marks a milestone for Paxos, as it moves beyond its exclusive partnership with Ethereum and embraces the scalability and efficiency of the Solana platform. The integration of Paxos Stablecoin (USDP) with Solana is set to launch on January 17, 2024, and is expected to revolutionize the everyday use of stablecoins for consumers.
Paxos Embraces Solana’s Potential:
The decision to integrate with Solana comes as no surprise, given the platform’s high-speed transaction capabilities and lower fees. Solana’s performance architecture makes it an ideal choice for stablecoin issuance and payments, providing a seamless user experience. By leveraging Solana’s infrastructure, Paxos aims to enhance the reliability and security of its stablecoin, USDP, solidifying its position as a key player in the evolving blockchain industry.
Walter Hessert, Head of Strategy at Paxos, expressed his enthusiasm for the expansion, stating, “The integration of USDP with Solana makes it easier for anyone to obtain and use the safest and most reliable stablecoins.” Paxos has already set the standard for oversight, reserve management, and issuance in the stablecoin market. This move further cements their commitment to making stablecoins ubiquitous for everyday consumers.
Solana’s Co-Founder, Raj Gokal, also emphasized the significance of this integration, stating, “Paxos’s decision to bring stablecoin issuance to the Solana blockchain will showcase how Solana’s high-performance network and low transaction fees can support regulated financial products and provide leaders like Paxos new ways to scale and innovate.”
Global Expansion and Regulatory Compliance:
Paxos has been making significant strides in expanding its stablecoin operations globally. Recently, the company secured in-principle approval from the Abu Dhabi Global Market’s Financial Services Regulatory Authority, allowing it to issue USD and other currency-backed stablecoins. This approval also grants Paxos the ability to offer crypto-brokerage and custody services through regulated ADGM entities. Pending full approval, Paxos plans to extend the reach of its regulated USD-backed stablecoins, emphasizing regulatory compliance, transparency, and adherence to anti-money laundering (AML) and know-your-customer (KYC) standards.
This regulatory milestone adds to Paxos’ existing approvals from New York and Singapore, solidifying its commitment to international growth through regulated frameworks. Paxos aims to leverage blockchain technology to create a more open and secure global financial system, providing increased access and financial freedom for users.
Paxos’s expansion to the Solana blockchain represents a significant step forward for the stablecoin industry. By integrating with Solana, Paxos aims to enhance the accessibility and security of its stablecoin, USDP, for everyday consumers. This move aligns with Paxos’s commitment to delivering seamless and efficient financial solutions in the dynamic blockchain landscape. With global expansion plans and a strong focus on regulatory compliance, Paxos is well-positioned to shape the future of stablecoin adoption and contribute to the development of a more open and inclusive financial system.