TL;DR

Introduction

It's widely recognised that legacy payment rails have problems. They frequently entail an excessive number of intermediaries, are costly and slow, necessitate intricate arrangements like pre-funding and liquidity constraints, and exclude the unbanked globally. Cross-border transactions simply make these flaws worse.

Stablecoin PayPal USD (PYUSD) combines the technical expertise of the Solana blockchain with PayPal's payments experience. PYUSD, which was formerly exclusive to Ethereum, is now available on Solana, where it can settle almost rapidly, is extremely economical, genuinely worldwide, and is accessible around-the-clock.

Paxos Trust Company, a limited purpose trust company with full chartered status and oversight by the New York State Department of Financial Services (NYDFS), is the issuer of PYUSD. PYUSD can be redeemed 1:1 for US dollars via PayPal and is fully backed by reputable liquid assets. PYUSD transactions receive support from PayPal's reporting, fraud prevention, and consumer protection capabilities in addition to being subject to daily attestations, frequent audits, and the publication of third-party attestation reports every month.

How to Build & Buy PYUSD?

Major Solana wallets and exchanges, including centralised exchanges like Crypto.com and wallets like Phantom, provide PYUSD. Eligible individuals can also purchase, sell, and utilise PYUSD within the PayPal ecosystem using Venmo and PayPal. Through the PYUSD faucet, developers can obtain test PYUSD on Solana on devnet.

Use Cases of PYUSD

PYUSD on Solana allows for new payment use cases that legacy systems are unable to serve, like the following: since it is quick, affordable, and worldwide.

• Near-instantaneous cross-border peer-to-peer payments: Using a Solana wallet, users can send PYUSD to qualified individuals anywhere in the world. The transfer settles almost instantly and at a very small cost.

• Economical B2B transfers: Because PYUSD is open-ended, companies can design systems that enable near-instantaneous, economical cross-border transfers.

• Simplified international payouts: By doing away with the convoluted web of local bank accounts, currencies, correspondent banking, and digital wallet rails, PYUSD streamlines international payouts.

• Microtransactions: Merchant platforms can process or broadcast microtransactions in real time and at a minimal cost with the help of PYUSD on Solana.

• Web3 payments: PYUSD provides digital payment services to Web3 merchants, including blockchain-based gaming platforms and NFT marketplaces.

Features of PYUSD

PYUSD on Solana was developed as a fungible token utilizing Solana's Token Extensions (TEs)—a token standard and set of extensions designed to provide ready-made compliance frameworks. TEs are a program that follows the SPL token standard, offering over a dozen audited extensions for token customization.

Building PYUSD on the foundation of TEs brings several advantages -

• Reduced Development and Testing: TEs, as reusable standards, significantly cut down the time needed for app development and testing.

• Enterprise Ready: TEs are plug-and-play, offering a quick, reliable, and proven way to integrate blockchain and PYUSD into applications.

• Flexibility: TEs are an open standard that enables PYUSD to be integrated and utilized not only within the PayPal ecosystem but also across any compatible wallet, exchange, or library.

Since PYUSD is built on the open standards of TEs, developers have the freedom to incorporate PYUSD into their applications, experiment with it, and build upon it as needed.

PYUSD Token Extensions

PYUSD implements several mint extensions, which must be initialized at the time of token creation. While token creators can configure these extensions post-creation, they cannot add new ones later. As a result, multiple extensions have been initialized for PYUSD, although not all may be actively used.

• Confidential Transfers: This extension allows merchants to offer confidentiality for transaction amounts to consumers while maintaining visibility for regulatory purposes. (Note: This feature has not yet been enabled on Solana.)

• Transfer Hook: This extension enables the calling of specific programs with each token transfer, providing fine-grained control over how wallets interact with the asset. While this has been initialized for potential future use, it currently has a null program ID.

• Permanent Delegate: This extension allows the designation of a permanent delegate for a mint, granting them unlimited delegate privileges over any account associated with that mint. This is crucial for regulatory purposes, as it enables the seizure of funds when required for compliance.

• Metadata and Metadata Pointer: This extension allows token creators to assign an address that defines the canonical (official) metadata for the token, which includes storing the name, ticker, and image in a standardized format.

• Mint Close Authority: This extension permits owners to close mint accounts and reclaim the lamports in those accounts. Although this feature may never be needed, it has been initialized as a precaution.

• Transfer Fees: This extension allows for the withholding of transfer fees on each transaction, which can be claimed by a designated account. It is included as a fail-safe and is currently set to 0.

The PYUSD Token Address is - 2b1kV6DkPAnxd5ixfnxCpjxmKwqjjaYmCZfHsFu24GXo.

This address uniquely identifies the PYUSD token on the Solana network and should be used when integrating PYUSD into your application.

For more information on how tokens are represented on the Solana network, refer to the "Tokens on Solana" section of the documentation.