Approved by the New York State Department of Financial Services, Paxos will issue the stablecoin USDP on Solana in January.

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Paxos to Issue USDP on Solana in January

According to Fortune, Paxos claims to have received approval to issue a stablecoin on the Solana blockchain in close collaboration with the New York State Department of Financial Services (NYDFS). The launch is scheduled for January 17 next year.

Paxos emphasizes their commitment to working directly with NYDFS in the issuance process, as opposed to competitors like Tether and Circle who operate outside the framework of financial regulatory agencies.

Walter Hessert, Paxos' Head of Strategy, also criticized Circle, known for its compliance:

From a growth perspective, we would like to issue stablecoins on every chain. Circle and other issuers can issue stablecoins on some protocols, but nobody knows which institution is regulating them, or what their processes are.

Will Solana Bring New Opportunities for Paxos?

A spokesperson for Paxos pointed out that Paxos underwent extensive scrutiny before approval, with plans to expand USDP from Ethereum to Solana, but declined to disclose the time spent on the review process.

Hessert stated:

Solana's speed and cost relative to Ethereum make it an attractive choice for Paxos partners. Our goal is to integrate stablecoins in cross-border remittances, payments for goods and services. In fact, we will begin to see a new wave of adoption that will be achieved in a way we have never seen in the stablecoin space.

Paxos' Market Cap Lags Behind

The market value of Pax Dollar USDP is currently only $370 million, while USDC and USDT have market values of $24 billion and $91 billion respectively.

According to CoinMarketCap, Paxos faced a sharp decline in market value from $1 billion in June this year due to the halt of BUSD issuance by the NYDFS. DeFiLlama data shows that USDP's market value even lags behind stablecoin protocol FRAX Finance and the soon-to-be-retired BUSD.

Nevertheless, after the incident, Paxos still received attention from PayPal and the two collaborated to issue the stablecoin PayPal USD PYUSD.

Is the reason why SEC accuses Binance's BUSD of being a security related to Paxos and Binance profiting from BUSD?