Paxos, a leading regulated stablecoin issuer, has secured a crucial regulatory nod from the New York Department of Financial Services (NYDFS) to expand its USDP stablecoin onto the Solana blockchain.
This landmark development, slated for a January 17, 2024 launch, marks a significant stride for Paxos and the broader web3 ecosystem.
Previously restricted to the Ethereum network due to regulatory hurdles, Paxos’s USDP is now poised to leverage Solana’s high-speed transaction capabilities and lower fees.
The NYDFS approval, granted in the form of a “non-objection,” signifies a rigorous vetting process focused on Solana’s internal risk management framework.
Paxos, emphasizing its commitment to regulatory compliance, highlighted its robust internal controls as a key factor in securing the greenlight.
“We are the most regulated stablecoin issuer in the world,” declared Walter Hessert, Head of Strategy at Paxos.
This expansion to Solana underscores our dedication to providing seamless and efficient financial solutions within the evolving blockchain landscape.”
Paxos’s venture into Solana is likely to be met with keen interest from various stakeholders within the web3 community.
Investors will watch closely to gauge the impact on USDP’s adoption and market share. Developers building on Solana may find new opportunities to integrate USDP into their applications, potentially fueling further innovation within the ecosystem.
Regulatory bodies will undoubtedly monitor the development closely, scrutinizing the implications for financial stability and consumer protection.
Paxos’s emphasis on compliance and its existing regulatory track record could offer some reassurance in this regard.
Paxos is also planning to launch a new U.S. dollar-backed stablecoin in Singapore, after securing an in-principle approval from the Monetary Authority of Singapore (MAS) for its new entity, Paxos Digital Singapore.
Paxos is also working on obtaining a full bank charter from the OCC, which would make it the first crypto-native company to do so.