Solana USDP to be Offered by Paxos After Approval from NYDFS
The New York Department of Financial Services has given Paxos the green light to expand to Solana.
The well-known blockchain-based bank Paxos has declared a major extension of its stablecoin issuance to the Solana blockchain. Thanks to regulatory approval from the New York Department of Financial Services (DFS) for Paxos’ development, the platform will issue the Pax Dollar (USDP) on Solana on January 17, 2024.
The partnership between the blockchain and Paxos, according to Solana co-founder Raj Gokal, aims to create a “financially empowering future.” In his further remarks on the partnership, Gokal said,
“Solana’s cheap transaction fees and high-performance network may enable regulated financial products, and leaders like Paxos will find new ways to grow and innovate with Solana’s stablecoin supply.”
Prior to Paxos’s move, USDP could only be issued on Ethereum. However, the distribution of USDP on Solana marks a major step forward. It supports the platform’s goal of how Paxos’s enterprise and consumer businesses will develop over time.
Development is seen by Paxos Head of Strategy Walter Hessert as a “significant step towards making stablecoins ubiquitous for everyday consumers.” Additionally, he said,
“When it comes to stablecoin market monitoring, reserve management, and issuance, Paxos is unrivaled. The most secure and trustworthy stablecoins are now more accessible than ever before because of our integration of USDP with Solana.”
The Singapore Monetary Authority (MAS) granted Paxos in-principle approval (IPA) in November 2023. With the green light from regulators, Paxos Digital Singapore Pte. Ltd., a Singaporean subsidiary of Paxos, may now provide digital payment token services.
Paxos is the “most regulated stablecoin issuer in the world,” says Hessert. The fact that Paxos severed relations with Binance in the wake of Binance’s legal difficulties is further evidence that the company complies with legislation.