Stablecoin issuer Paxos has received approval from the New York Department of Financial Services (DFS) to expand its operations to the Solana blockchain. This move comes after a thorough review process by the DFS, focusing on Solana’s risk framework. Previously, Paxos was only able to issue its Pax Dollar stablecoin on the Ethereum network.
The Pax Dollar, which is backed 1:1 by the US dollar, will debut on the Solana platform on January 17, 2024. This expansion is significant because Solana offers faster transaction speeds and lower costs compared to Ethereum. Solana can process up to 65,000 transactions per second, while Ethereum’s current capacity is around 30 transactions per second.
Paxos sees this expansion as a step towards making stablecoins more accessible to everyday consumers. The company aims to provide the safest and most reliable stablecoins by integrating USDP with Solana. Walter Hessert, Paxos’s head of strategy, emphasized the company’s commitment to oversight, reserve management, and issuance in the stablecoin market.
Despite experiencing outages in 2022, Solana has recently achieved 100% uptime, which has increased confidence in its reliability.
Paxos’s expansion plans extend beyond Solana. The company is actively seeking regulatory approval to operate on other layer-1 and layer-2 blockchains. Additionally, Paxos has been expanding its international presence, with preliminary approval from Singapore’s regulatory authorities to launch a US dollar-backed stablecoin and approval from Abu Dhabi’s regulators to issue stablecoins and offer digital asset services in the emirate.
It’s worth noting that earlier this year, the US Securities and Exchange Commission (SEC) announced its intention to sue Paxos for allegedly violating investor protection rules. The SEC claims that Binance USD, another stablecoin issued by Paxos, is an unregistered security. The full scope of the investigation is unclear, but regulators have been scrutinizing crypto firms’ practices regarding the handling of clients’ digital assets, especially in light of the collapse of Sam Bankman-Fried’s crypto empire.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 🇸🇬 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Sam Bankman-Fried, Walter Hessert |
| Companies | New York Department of Financial Services (DFS), Solana, Ethereum, Singapore’s regulatory authorities, Abu Dhabi’s regulators |
| Currencies | US Dollar, Solana, Ethereum, Pax Dollar |
| Securities | None |
