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Paxos Secures New York DFS Approval to Debut Stablecoin Products on Solana Blockchain

Paxos, a leading stablecoin issuer, has received the green light from the New York Department of Financial Services (NYDFS) to extend its operations beyond Ethereum to the Solana blockchain.

This approval, hailed by Paxos as a momentous milestone in innovation, signifies a pivotal shift in the company’s business strategies. Walter Hessert, Paxos’s Head of Strategy, emphasized the significance of this development, citing the exhaustive review conducted by NYDFS before granting the “non-objection” for Paxos to expand its USD-pegged stablecoin, USDP, to Solana.

Hessert proudly proclaimed Paxos as the foremost regulated stablecoin issuer globally, drawing a sharp contrast to competitors like Tether (USDT) and USD Coin, which lack DFS regulation. He underscored, “We are the only company that has been issuing regulated stablecoins at scale—period.”

The integration of USDP with Solana is poised to revolutionize the accessibility of stablecoins for everyday consumers, according to Hessert. This expansion, in his view, reaffirms Paxos’s commitment to stringent oversight, reserve management, and issuance standards in the stablecoin market.

Raj Gokal, Co-Founder of Solana, hailed Paxos’s decision as a testament to Solana’s network capabilities, praising its ability to support regulated financial products with low transaction fees and high performance. Gokal expressed confidence that Paxos leveraging the Solana network would catalyze innovation and scalability for both entities.

Paxos’s adherence to regulatory oversight by NYDFS underscores its commitment to building solutions on blockchain protocols with the utmost security and integrity. The backing of USDP on Solana, similar to other Paxos stablecoins, remains fully collateralized by the U.S. dollar, maintaining a 1:1 reserve ratio.

Notably, the surge in Solana’s native token, SOL, by 8% within 24 hours, trading at $94.50, underscores the market’s positive response to this development. Over the past month, SOL has witnessed an impressive 75% surge, indicative of growing investor confidence and interest.

Beyond market movements, the increasing search volume for Solana on platforms like Google, soaring by 250% from October to December, highlights the growing curiosity and attention garnered by Solana’s blockchain and its associated projects.

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