PayPal's stablecoin PYUSD is now live on Solana, the company announced Wednesday. The move brings the dollar-pegged token — originally launched on Ethereum last August — to a network known for fast and cheap transactions, opening the door for broader use in payments and decentralized finance.
Why Solana
PayPal said it chose Solana for its ability to handle high transaction volumes at low cost. The network's architecture allows for what the company called “thousands of transactions per second” at fees often under a cent. That's a sharp contrast to Ethereum, where gas fees can spike into double digits during congestion. The integration also leverages Solana's token extensions — a set of built-in features that let developers add compliance and privacy controls directly into the token itself. PayPal says that will make it easier for merchants and platforms to accept PYUSD without heavy custom engineering.
What users can do with PYUSD on Solana
Starting today, Solana-based wallets like Phantom and Solflare support PYUSD. Users can send and receive the stablecoin, swap it via decentralized exchanges, and use it in DeFi protocols such as Jupiter and Orca. PayPal also said it will enable PYUSD for cross-border remittances through its Xoom service, though that feature is rolling out gradually. The stablecoin remains fully backed by U.S. dollar deposits and short-term Treasuries, with monthly attestations from a third-party accounting firm.
Market context
PYUSD's market cap has hovered around $400 million since its Ethereum debut, a fraction of the $160 billion stablecoin market dominated by USDT and USDC. By adding Solana, PayPal is betting that lower friction will drive adoption among merchants and retail users who've been priced out of Ethereum's fee spikes. The timing also aligns with a broader push by Solana to attract institutional projects — last month, Visa expanded its USDC settlement pilot to the network.
PayPal hasn't disclosed whether it plans to bring PYUSD to other chains. For now, the focus is on building out the Solana ecosystem integrations and monitoring usage. The company said it will continue to support PYUSD on Ethereum, and that users can bridge the token between the two networks via Wormhole. The real test will be whether the lower costs actually translate into everyday spending — something stablecoins have struggled to achieve outside of trading.
