Solana Deploys Token Extensions for SPL Token Standard

The Solana Foundation introduces token extension on the Solana blockchain.

Hands holding up a Solana box.
Created by Gabor Kovacs from DailyCoin
  • The Solana Foundation has deployed a key upgrade.
  • The foundation launched extensions for “the next generation of the SPL token standard.”
  • Developers can get started with the token extensions today.

To advance developer tools on the Solana blockchain and foster ecosystem growth, the Solana Foundation has launched multiple token extensions for the SPL Token standard.

The foundation describes token extensions as “the next generation of the SPL Token standard” that “provide the same controls as permissioned blockchain environments,” unlocking new possibilities for businesses, institutions, and developers.

Introducing Token Extension on Solana

In a press release dated January 24, the Solana Foundation announced the launch of token extensions, specifically designed “to cater to builders across various industries,” including payments, stablecoins, and real-world assets (RWA).

The extensions available for developers include Transfer Hooks for controlling token transactions, Transfer Fees for building sustainable revenue models through charges, and Non-Transferability “for credentialing and unique user identification.”

Developers can also mix and match Confidential Transfers extensions to leverage zero-knowledge proofs to encrypt transactions while still providing token issuers with “certain audit rights necessary for compliance.”

“The 13 token extensions can be implemented out of the box quickly, flexibly combined, and are fully audited. Developers can get started building today,” the foundation wrote on Twitter (X).

Per the statement, companies like Paxos and GMO Trust have already tapped token extensions to drive innovation while remaining compliant. Paxos and GMO Trust are both “leveraging the benefits of token extension” to issue stablecoins on the Solana blockchain.

Read about Solana’s recent performance in the market:
Solana Dropped 10% Today, Will the Downward Spiral Continue?

Stay updated on Solana’s stablecoin volume:
Can Solana Stablecoin Volume Threaten Ethereum’s Dominance?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.