A function known as “confidential transfers” is a part of PayPal’s PYUSD stablecoin, which was just activated on the Solana blockchain.
The goal of the feature is to keep things open for regulators but yet giving consumers more privacy. The dollar-pegged stablecoin, which was previously exclusively accessible on the Ethereum blockchain, will now be available on Solana, according to an official release on May 29 by PayPal.
With the advent of “confidential transfers,” PYUSD merchants may assure regulatory compliance while providing consumers with transactional secrecy.
As a result, users may enjoy some privacy while their transaction amounts remain hidden from prying eyes.
Bitcoin enthusiast Udi Wertheimer claimed in an X post that PayPal customers will have access to a “secret transactions”-like function even before Bitcoin’s devs added it.
Helius Labs CEO Mert Mumtaz said that the speed of the blockchain was not the only factor in PayPal’s decision to expand to Solana.
Mumtaz stressed how revolutionary Solana is due to its built-in support for private transactions and its ability to design tokens on Layer 1.
For PYUSD users looking for more privacy-friendly features, the option to conduct secret transactions on Solana is a huge plus.
Many advantages accrue to PYUSD from Solana’s token extension standard, which is compliant with the SPL token standard and offers secret transfers among them.
Among these benefits are increased adaptability, streamlined development and testing, and enterprise-ready features that are simple to incorporate.
Any compatible wallet, exchange, or library outside of PayPal may utilize PYUSD thanks to the open standard of token extensions. This means that it is not limited to only the PayPal ecosystem.
Issuer Paxos claims that U.S. Treasury Reverse Repurchase Agreements provide the primary backing for PYUSD, which debuted in August 2023.
According to CoinGecko, its 24-hour trading volume is about $18 million, and its circulating supply has increased by 50% since the beginning of the year.
The Paxos Trust Company-issued stablecoin, which was previously only accessible on Ethereum, now has a total circulation of roughly $400 million. According to Solana’s network explorer, there is a current supply of $5 million on the Solana blockchain.
The uncontrolled stablecoin industry is worth around $140 billion right now. Cynthia Lummis and Kirsten Gillibrand, two senators from New York, collaborated last month to introduce a measure to regulate stablecoins.
Issuers of payment stablecoins would be required to establish wholly-owned subsidiaries devoted to the issuance of stablecoins and to meet operational and reserve standards under the new law.
Last summer, Senators Lummis and Gillibrand submitted a measure to define decentralized finance and give government organizations like the Commodity Futures Trading Commission authority over cryptocurrency. This bill is just one of many that they have introduced about the digital assets market.
Triple-A, a payments provider located in Singapore, has announced that it would add PayPal’s stablecoin to its list of approved tokens for customer payments.
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