PayPal’s PYUSD stablecoin, which recently launched on Solana, will now offer an additional feature called “confidential transfers.” This feature allows merchants to maintain transaction visibility for regulatory purposes while providing confidentiality for transaction amounts to their consumers. The deployment of PYUSD on Solana marks a significant expansion for PayPal, as the stablecoin was previously only available on Ethereum.
The introduction of “confidential transfers” has sparked some discussion within the crypto community. Udi Wertheimer, a well-known Bitcoin enthusiast, pointed out that PayPal users will have access to a feature called “confidential transactions” that Bitcoin developers have been talking about for almost a decade but have not yet built. This has led to some humor and skepticism among crypto enthusiasts.
According to Helius Labs CEO Mert Mumtaz, PayPal’s expansion to Solana goes beyond just speed. The integration of Solana’s token extension standard offers additional programmability features such as “transfer hooks,” which allow specific programs to be called with each token transfer. This enhances control over the asset for wallets.
Solana’s token extension standard provides several benefits for the PayPal stablecoin. It offers compliance frameworks adhering to the SPL token standard, reducing development and testing efforts. It also provides enterprise-ready “plug-and-play” capabilities and flexibility. The Solana Foundation explains that the token extension standard allows PYUSD to be integrated and used not only within the PayPal ecosystem but also outside of PayPal with any compatible wallet, exchange, or library.
PYUSD was launched in August 2023 and is primarily backed by U.S. Treasury Reverse Repurchase Agreements. Its circulating supply has increased by 50% since the beginning of this year, and it currently has a 24-hour trading volume of around $18 million. The stablecoin was previously only available on Ethereum, but now its total circulation is around $400 million, with a current supply of $5 million on Solana, according to Solana’s network explorer.
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