PayPal’s PYUSD stablecoin, which was recently deployed on Solana, will offer “confidential transfers” as an additional feature.
On May 29, payments platform PayPal announced that it had deployed its PYUSD dollar-pegged stablecoin on Solana, having only previously been available on Ethereum.
One notable extension initialized for PYUSD is “confidential transfers,” which will allow merchants to “provide confidentiality for transaction amounts to their consumers while maintaining visibility for regulatory purposes,” according to a May 29 Solana blog post.
Bitcoiner Udi Wertheimer said “This sounds a lot like “confidential transactions,” a feature Bitcoin devs have been larping about for almost a decade but never built, and you’re telling me PayPal users will have it first? LOL,” in a post on X on May 29.
Helius Labs CEO Mert Mumtaz said, “Paypal didn't expand to Solana purely for speed,” before adding:
“Solana also allows confidential transfers and token programmability natively on the L1 itself. Confidential transfers alone are a game-changer.”
Additional programmability includes “transfer hooks” which allow the ability to call specific programs with each token transfer, enabling more control over the asset for wallets.
Related: PayPal opens PYUSD stablecoin to USD conversions for cross-border transfers
Solana’s token extension standard, which provides compliance frameworks adhering to the SPL token standard, offers several benefits for the PayPal stablecoin, said the firm.
These include reduced development and testing, enterprise-ready “plug-and-play” abilities, and flexibility.
“TEs [token extensions] are an open standard that allows PYUSD to be integrated and used not only in the PayPal ecosystem, but outside of PayPal with any compatible wallet, exchange, or library,” explained the Solana Foundation.
PYUSD was launched in August 2023 and is primarily backed by U.S. Treasury Reverse Repurchase Agreements, according to issuer Paxos.
Its circulating supply has increased by 50% since the beginning of this year and the stablecoin has a 24-hour trading volume of around $18 million, according to CoinGecko.
The Paxos Trust Company-issued stablecoin was previously only available on Ethereum. The total circulation is around $400 million and the current supply on Solana is $5 million, according to Solana’s network explorer.
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