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Paxos to launch USDP stablecoin on Solana, secures NY regulatory approval

Paxos claims that the approval from the New York regulator aligns with its commitment to regulatory compliance and transparency.

Paxos to launch USDP stablecoin on Solana, secures NY regulatory approval

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Blockchain infrastructure firm Paxos has received regulatory approval to expand its stablecoin operations to the Solana blockchain. The USDP stablecoin is expected to launch on Solana on January 17, 2024, with its smart contract following the SPL token standard.

According to initial coverage today from Fortune, the New York Department of Financial Services (DFS) has given Paxos approval to launch its USDP stablecoin on Solana.

Through this approval, Paxos aims to expand the reach and volume of its USDP stablecoin. The market for stablecoins currently has Tether’s USDT ($91 billion) and Circle’s USDC ($24.8 billion) in the top two positions by market cap. Paxos’ stablecoin offering is ranked ninth with a market cap of $370 million, according to data from Messari.

Paxos claims that the approval from the DFS aligns with its commitment to regulatory compliance and transparency. The stablecoin issuer says it is the “only blockchain platform to be regulated in multiple jurisdictions and across multiple blockchains.”

“Paxos has set the standard for oversight, reserve management and issuance in the stablecoin market. By integrating USDP with Solana, we’re making it easier for anyone to get and use the safest, most reliable stablecoins,” Paxos Head of Strategy Walter Hessert said.

In its announcement, Paxos said that this kind of regulatory oversight ensures that they build solutions on protocols like Solana with “security and integrity,” adding that they aim to utilize blockchain technology “in responsible ways” for real-world use cases.

“The Solana network will enable Paxos to further its vision for a more open and financially empowering future,” shares Solana co-founder Raj Gokal, commenting on their partnership with Paxos.

Paxos asserts that its stablecoin has consistent 1:1 parity with the US dollar. Stablecoin research from S&P shows that USDP has exhibited 7,581 depeg events above $1.005 for a total depeg time of 51,217 minutes (or roughly a month and five days).

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