Paxos Receives Regulatory Approval from New York to Join Solana Blockchain

Paxos has reportedly gained regulatory approval from the New York Department of Financial Services (DFS) to launch its products on the Solana blockchain, as per a recent Cointelegraph report. The DFS, which previously limited Paxos to issuing its Pax Dollar (USDP) stablecoin solely on Ethereum, granted a "non-objection" for the expansion to Solana after an extensive review. The launch on Solana is scheduled for January 17, 2024.

Pax Dollar is a fiat-collateralized stablecoin, backed 1:1 by the U.S. dollar. Walter Hessert, Paxos' head of strategy, emphasized their status as the most regulated stablecoin issuer globally, distinguishing them from competitors like Tether (USDT) and USD Coin (USDC).

Hessert highlighted Solana's appeal, citing faster transaction speeds and lower costs compared to Ethereum. He suggested that Paxos' partners, including PayPal, might consider expanding their stablecoins to Solana. Solana, known for high transaction speeds, can process 50,000 to 65,000 transactions per second, surpassing Ethereum's 30 TPS.

Paxos is actively seeking regulatory approval for other blockchains, as part of its international expansion. The company recently gained preliminary approval from Singapore's regulator for a U.S. dollar-backed stablecoin and approval from Abu Dhabi's regulator for stablecoins and digital asset services.

Resources:

Cointelegraph