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According to Fortune Magazine, Paxos claims to have received approval from the New York State Department of Financial Services (NYDFS) to issue a stablecoin on the Solana blockchain, with plans to launch on January 17th next year.
Paxos emphasizes its commitment to working directly with the NYDFS in the issuance process, distinguishing itself from competitors like Tether and Circle who operate outside the framework of financial regulatory bodies.
Walter Hessert, Paxos' Head of Strategy, also criticized compliantly recognized Circle, stating, "From a growth perspective, we would hope to issue stablecoins on every chain. Circle and other issuers can issue stablecoins on some protocols, but no one knows which institutions are regulating them or what their processes are."
Will Solana Bring New Opportunities for Paxos?
A spokesperson for Paxos noted that the approval came after a thorough and comprehensive review. Paxos plans to extend USDP from Ethereum to Solana but refused to disclose the time spent in the review process.
Hessert stated, "Solana's speed and cost relative to Ethereum make it an attractive choice for Paxos partners. Our goal is to integrate stablecoins into cross-border remittances, payments for goods and services. In fact, we will start to see a new wave of adoption in a way we have never seen in the stablecoin space."
Low Market Cap for Paxos
PaxDollar (USDP) currently has a market cap of only $370 million, while USDC and USDT have market caps of $24 billion and $91 billion, respectively.
According to CoinMarketCap, Paxos' market cap plummeted from $1 billion in June due to the NYDFS ordering a halt to the issuance of BUSD. USDP's market cap even falls behind the stablecoin protocol FRAX Finance and the soon-to-be-retired BUSD, as per DeFiLlama data.
Despite this, Paxos still garnered attention from PayPal after the incident, and the two collaborated to issue the stablecoin PayPalUSD (PYUSD). |
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Post time 28-12-2023 05:56:42