Paxos receives approval from NY regulator to expand to Solana

Quick Take

  • Paxos said the approval from the New York Department of Financial Services  “represents a significant milestone for innovation and evolution of Paxos’s enterprise and consumer-facing business.”

Stablecoin issuer Paxos received approval from a New York regulator to expand to the Solana blockchain after being previously limited to just Ethereum.

Paxos said the approval by the New York Department of Financial Services "represents a significant milestone for innovation and evolution of Paxos's enterprise and consumer-facing business," according to a statement on Friday. Fortune first reported the news.

Paxos said it plans to offer USDP, a USD-backed stablecoin, on Solana to the public on Jan. 17. The Solana blockchain has rapid transaction rates and lower transaction fees, according to Paxos's statement. 

"The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers," Walter Hessert, Paxos's head of strategy, said in a statement. "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 received the first limited purpose trust charter for digital assets from NYDFS in 2015, according to Paxos's website. The firm also said all of its operations are supervised by the New York regulator.

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The company has also met the ire of regulators. Earlier this year, NYDFS ordered the firm to stop issuing Binance USD, after the stablecoin was launched in 2019 by Binance and Paxos. 

Solana surges

Solana's native SOL token has surged 8.1% over the past 24 hours to trade at $94.50 at 10:22 a.m. ET. It's surged 73% over the past month.

Search volume for Solana, meanwhile, has also risen over the last few months. Google searches for the term "solana" increased 250% from early October to early December, according to data tracked by The Block.


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About Author

Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.

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