- Paxos acquires regulatory nod from the NY DFS for its expansion to Solana.
- The platform will issue Pax Dollar on Solana on January 17, 2024.
- Solana’s co-founder, Raj Gokal, asserts the alliance envisions building a financially empowering future.
Paxos, a prominent blockchain-based financial institution, announced the strategic expansion of its stablecoin issuance to the Solana blockchain. As the New York Department of Financial Services (DFS) has provided regulatory approval for Paxos’ expansion, the platform will issue its Pax Dollar (USDP) on Solana on January 17, 2024.
Solana’s co-founder Raj Gokal asserted that the blockchain’s alliance with Paxos envisions building a “financially empowering future.” Further commenting on the collaboration, Gokal stated,
Paxos’s decision to bring stablecoin issuance to the Solana blockchain will showcase how Solana’s high-performance network and low transaction fees can support regulated financial products and provide leaders like Paxos new ways to scale and innovate.
While the issuance of USDP was previously exclusive to Ethereum, Paxos’ initiative to distribute the tokens on Solana proves to be a significant milestone. It fosters the platform’s vision of the evolution of Paxos’s enterprise and consumer-facing businesses.
Walter Hessert, Head of Strategy at Paxos, sees the development as an “important step towards making stablecoins ubiquitous for everyday consumers.” He added,
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.
In November 2023, Paxos acquired in-principle approval (IPA) from the Monetary Authority of Singapore (MAS). The regulatory nod allows Paxos’ Singapore subsidiary, Paxos Digital Singapore Pte. Ltd., to offer digital payment token services.
According to Hessert, Paxos is the “most regulated stablecoin issuer in the world.” Paxos’ compliance with regulations is further reinforced by the firm’s decision to cut ties with Binance following Binance’s legal challenges.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
