Paxos Gains Approval to Bring Regulated Stablecoin to Solana
Stablecoin issuer Paxos has received regulatory approval to expand its dollar-pegged token, USDP, to the Solana blockchain. The move is set to launch on January 17, 2024, according to the details shared exclusively with Fortune.
- Paxos gains NY approval to launch the USDP stablecoin on Solana.
- Seen as a major coup amid the battle with Circle’s USDC and Tether
Walter Hessert, Head of Strategy at Paxos, stated the approval from the New York Department of Financial Services (DFS) will allow the firm to tap into Solana’s superior speed and lower costs to drive usage of USDP.
Unlike rivals Tether and Circle’s USD Coin, which operate across various chains, regulatory constraints have thus far restricted Paxos to only issuing on Ethereum. This has hindered adoption relative to its peers.
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Paxos Strategy Head Touts Its Regulatory Status
“Paxos is the most regulated stablecoin issuer in the world. We are the only company that has been issuing regulated stablecoins at scale,” Hessert claimed.
The approval process for Solana involved risk assessment frameworks tailored to analyze the blockchain’s security and compliance standards. While details of the review remain confidential, Hessert said the ability to showcase oversight rigors assures partners of protection.
Paxos counts PayPal, MercadoLibre, and Mastercard among clients using its technology to enable stablecoin applications from cross-border payments to settlement layers.
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The firm’s collaboration with PayPal on the PYUSD stablecoin demonstrates the type of big-name partnerships Paxos leverages its regulatory credibility to land.
With today’s launch pad now set, Paxos appears well-positioned to tap into surging interest in regulated stablecoins across both DeFi and traditional fintech. Yet heated competition continues to raise the stakes in the stablecoin realm.
