PayPal selects Solana as default network for PYUSD, citing low fees and high throughput for stablecoin payments.
PayPal has named Solana as the default blockchain for PYUSD stablecoin payments, marking a new step in its digital asset strategy.
The company said the integration aims to provide faster settlement and near-zero transaction costs for users worldwide.
PayPal Makes Solana Default for PYUSD Stablecoin Payments
PayPal selected Solana as the primary network for processing PYUSD transactions.
PYUSD is a U.S. dollar-pegged stablecoin launched in 2023. It is fully backed and redeemable one-to-one for U.S. dollars.
The stablecoin first launched on Ethereum as an ERC-20 token. PayPal expanded PYUSD to Solana in May 2024.
Solana now serves as the default blockchain for payments using the token.
PayPal said Solana’s on-chain performance supports large transaction volumes. The network offers high throughput and low fees.
These features align with PayPal’s focus on cost efficiency and speed.
Why PayPal Selected Solana Over Other Networks
Solana processes transactions at high speed with minimal fees. This allows faster settlement for global payment flows.
Lower operational costs can also benefit users and merchants. PayPal has expanded its crypto services since 2020.
The company continues to integrate blockchain infrastructure into its payment systems. The Solana decision reflects ongoing efforts to modernize digital currency operations.
Market data shows Solana’s decentralized exchange volume reached $117 billion in 2026.
Ethereum recorded about $52 billion during the same period. Analysts note that transaction activity on Solana has grown steadily.
Related Reading: PayPal Applies for Utah Bank License to Launch PayPal Bank
Solana’s Expanding Role in Institutional Crypto Infrastructure
Solana has introduced a digital asset treasury model with Anchorage Digital and Kamino.
The structure allows institutions to borrow against staked SOL. Participants may earn staking rewards while accessing liquidity.
The tri-party custody model includes automated loan-to-value monitoring.
Margin calls are also managed through system oversight. This framework aims to support institutional participation.
Despite network growth, SOL has faced price volatility. The token trades near $87 and remains down year-to-date.
Standard Chartered has projected Solana could reach $2,000 by 2030, though market conditions remain fluid.
PayPal’s adoption of Solana as the default network places the blockchain within a global payment system.
The move connects a regulated stablecoin with high-speed infrastructure. Industry participants continue to monitor usage trends and capital flows across both networks.
Source: https://www.livebitcoinnews.com/paypal-makes-solana-default-for-pyusd-stablecoin-payments/
