Solana Received Some Good News From Paxos!

The stablecoin company Paxos has obtained approval from the New York regulator to operate on the Solana blockchain network. This expansion move by Paxos could increase the potential of offering its stablecoin products to users on Solana.

Stablecoin issuer Paxos has received approval from the New York Department of Financial Services (DFS) to expand its products onto the Solana blockchain. The company, which was previously restricted by the DFS and could only issue Pax Dollar (USDP) on the Ethereum network, can now broaden its operations to Solana. USDP is pegged to the US dollar at a 1:1 ratio.

Walter Hessert, the Chief Strategy Officer at Paxos, noted that after a comprehensive review, the DFS did not object to their request to expand to Solana. He claimed that Paxos is the most regulated stablecoin issuer globally and emphasized that there is more regulation compared to companies like Tether and Circle.

Hessert highlighted that Solana offers faster transactions and lower costs compared to Ethereum, making it a more attractive option for Paxos partners. Solana is a layer-1 protocol known for its high transaction speed and low cost, capable of processing between 50,000 to 65,000 transactions per second, significantly surpassing Ethereum's current capacity. Although Solana experienced some disruptions in 2022, it has demonstrated smooth performance in recent months.

According to Walter Hessert, Paxos is seeking regulatory approval for other layer-1 and layer-2 chains as well. The company has been expanding its international operations in recent months.

On November 16, Paxos announced receiving approval from the Singapore regulator to launch a stablecoin. Additionally, the company obtained permission from the Abu Dhabi regulator to issue stablecoins and conduct digital asset services.

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