- Paxos has received regulatory approval to launch stablecoins on the Solana network.
- The first product will be presented on January 17, 2024.
- Paxos emphasized its desire to cooperate with DFS in the issuance of stablecoins.
The New York Department of Financial Services (DFS) has authorized PYUSD stablecoin issuer Paxos to offer products on the Solana network. Fortune reports this, citing its own sources.
As it became known, the issuer will launch a stablecoin on the Solana network on January 17, 2024. Paxos was reported to be the first crypto firm to receive such approval under the new digital asset regulatory regime introduced by the DFS in 2015.
“Paxos is the most regulated stablecoin issuer in the world. We are the only company that issues stablecoins on a large scale,” said head of strategy Walter Hessert.
According to a media statement, Paxos received DFS approval to issue its first stablecoin in 2018. The asset was named Paxos Standard, and in 2021 it was renamed USDP.
A Paxos spokesman said the commission conducted an “extensive and exhaustive review” before approving the launch of products on the Solana network. According to him, the desire to work directly with DFS when issuing digital assets, rather than operating outside the framework of the financial regulator, distinguishes the firm from its competitors.
“Circle and other players may use different protocols to carry out transactions. But no one knows who is watching this and how legal it is,” Hessert added.
Note that since the end of October, Solana quotes have increased several times. The popularity of Google search queries about this cryptocurrency has also increased by 250% over the past 2 months, and the asset itself has entered the top 5 by capitalization.
We figured out what is driving the rapid development of the Solana ecosystem and the growth of SOL quotes:
Ivan BabiukHessert said Solana’s speed and cost compared to Ethereum will make the asset an attractive option for Paxos partners looking to implement the stablecoin for use cases ranging from international money transfers to payments for goods and services.. He also noted that the company hopes to receive permission to issue stablecoins in other blockchains.
Let us remind you that in February 2023 Paxos officially suspended the release of BUSD. On December 15, the Binance crypto exchange delisted this stablecoin.