Paxos Receives Nod to Launch New Stablecoin on Solana

After shutting down BUSD, Paxos is back with another stablecoin, USDP.

by Insha Zia. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: December 23, 2023 │ 1:15 AM GMT

A hand with dollars reaching out from a galaxy. — *Created by Gabor Kovacs from DailyCoin*

Paxos received the necessary permissions to expand its stablecoin to Solana.
Pax Dollar (USDP) will be available on the network in 2024.
Paxos’s Head of Strategy highlighted Solana’s throughput and how low fees lured them.

Stablecoin issuer Paxos had a rough start to the year after US Regulators upped the ante on crypto regulation in the country, targeting major exchanges like Binance and leading to the closure of one of its key products, BUSD.

However, Paxos is looking to make a comeback and play by the rules this time. The stablecoin issuer is back with a new stablecoin and has obtained the necessary permissions from one of the strictest jurisdictions in the country.

Paxos Greenlit for Bringing USDP to Solana

On Friday, stablecoin issuer Paxos announced that it received approval from the New York Department of Financial Services to expand its new stablecoin, Pax Dollar (USDP), to Solana after being limited to just Ethereum.

Sponsored

In an official statement, Paxos celebrated the approval as a major milestone for innovation and evolution for the company. The stablecoin issuer shared that it plans to offer USDP, a dollar-backed stablecoin, on Solana to the public on January 17, 2024.

Paxos highlighted that due to Solana’s rapid transaction throughput and lower transaction fees, it strategically made sense to expand USDP to the protocol.

Walter Hessert, Paxos Head of Strategy, shared his thoughts on the partnership:

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

On the Flipside

Paxos’s Head of Strategy, Walter Hessert, asserts that his company is the only stablecoin issuer globally, being the only one regulated by the NYDFS. In contrast, neither Tether nor Circle is regulated.
Reports indicate that obtaining a license for stablecoin issuance in New York is challenging due to its stringent regulatory requirements.
Solana’s throughput can reach as high as 60,000 transactions per second.

Why This Matters

The approval from the NYDFS is a major milestone achievement for Paxos. The industry could soon see another competent stablecoin come into the market.