Published
4 weeks ago on
May 31, 2024
PayPal’s PYUSD stablecoin, recently launched on Solana, will offer “confidential transfers” as an added feature.
On May 29, PayPal announced the deployment of its dollar-pegged stablecoin on the Solana blockchain, previously available only on Ethereum.
A significant new feature for PYUSD is “confidential transfers.”
According to a May 29 Solana blog post, this feature will enable merchants to maintain transaction amount confidentiality for their consumers while ensuring regulatory visibility.
Bitcoiner Udi Wertheimer commented, “This sounds a lot like ‘confidential transactions,’ a feature Bitcoin devs have been larping about for almost a decade but never built, and you’re telling me PayPal users will have it first? LOL,” in a post on X on May 29.
Helius Labs CEO Mert Mumtaz remarked, “PayPal didn’t expand to Solana purely for speed,” and added, “Solana also allows confidential transfers and token programmability natively on the L1 itself. Confidential transfers alone are a game-changer.”
Additional programmability on Solana includes “transfer hooks,” allowing specific programs to be called with each token transfer, giving wallets more control over the asset.
Solana’s token extension standard, compliant with the SPL token standard, provides several benefits for PayPal’s stablecoin.
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These benefits include reduced development and testing, enterprise-ready “plug-and-play” capabilities, and flexibility.
“TEs [token extensions] are an open standard that allows PYUSD to be integrated and used not only in the PayPal ecosystem but also outside of PayPal with any compatible wallet, exchange, or library,” explained the Solana Foundation.
PYUSD was launched in August 2023 and is primarily backed by U.S. Treasury Reverse Repurchase Agreements, as per issuer Paxos.
Its circulating supply has increased by 50% since the beginning of this year, with a 24-hour trading volume of around $18 million, according to CoinGecko.
Previously, the Paxos Trust Company-issued stablecoin was only available on Ethereum.
The total circulation is around $400 million, with the current supply on Solana at $5 million, according to Solana’s network explorer.
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