Paxos Secures Approval to Expand Stablecoin Operations to Solana Blockchain

Paxos, a regulated stablecoin issuer, secures approval from the New York Department of Financial Services (NYDFS) to expand Pax Dollar operations to Solana, effective January 17, 2024. This marks a departure from Ethereum exclusivity.

Pax Dollar (USDP), a fiat-backed stablecoin pegged 1:1 to the US dollar, got DFS “non-objection” post-Solana’s risk framework review. The DFS’s “non-objection” reinforces Paxos as the world’s “most regulated stablecoin issuer,” setting it apart from Tether and USD Coin.

Walter Hessert, Paxos’ Head of Strategy, highlights Solana’s advantages, including superior transaction speeds and lower costs compared to Ethereum. He hints at possible partner expansions, like PayPal, capitalizing on Solana’s 50,000 to 65,000 transactions per second(TPS).

“The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers,”

Paxos

Paxos plans regulatory approvals for other blockchains following its international expansion. This includes preliminary approval in Singapore and regulatory clearance from Abu Dhabi for stablecoin issuance and digital asset services.

“Paxos has set the standard for oversight, reserve management and issuance in the stablecoin market. By integrating USDP with Solana, we’re making it easier for anyone to get and use the safest, most reliable stablecoins.”

Walter Hessert

In the wider regulatory landscape, Paxos obtained NYDFS’s inaugural digital asset limited-purpose trust charter in 2015, under ongoing supervision. Despite regulatory hurdles, the stablecoin trailblazer, faces challenges like halting Binance USD issuance as directed earlier this year.

As Paxos diversifies, Solana’s native SOL token experiences an 8.1% surge in 24 hours, reaching $94.50, reflecting a 73% monthly increase. The blockchain’s rising popularity is evident in a 250% surge in Google searches for “Solana” from October to December, according to The Block.