New York Department of Financial Services (NYDFS) Approves Paxos
Paxos has positioned itself as the most regulated stablecoin issuer worldwide, with a proven track record of issuing regulated stablecoins at scale. Fortune Magazine reports that Paxos has received the first trust charter granted to a crypto firm under the NYDFS’s digital asset regulatory framework, established in 2015.
Notably, the NYDFS is currently the sole US financial regulator that has implemented a comprehensive regulatory framework for cryptocurrencies, attracting major industry players such as Coinbase and Gemini.
Paxos initially obtained NYDFS approval in 2018 to issue its first stablecoin, Paxos Standard (now known as USDP). However, NYDFS restrictions limited Paxos’ issuance exclusively to the Ethereum (ETH) blockchain.
Paxos Sees Opportunities in Solana
Although Solana has faced challenges associated with Sam Bankman-Fried, its native token SOL has recently gained significant traction. Paxos believes that Solana’s speed and cost advantages over Ethereum make it an appealing option for implementing stablecoins in various use cases, including cross-border remittances and payments for goods and services.
Paxos’ collaboration with PayPal in launching PYUSD, a notable stablecoin project, is a testament to the company’s commitment to innovation and regulatory compliance.
Paxos’ initial offering on the Solana blockchain will be its stablecoin USDP, which currently holds a market cap of approximately $370 million. While Paxos acknowledges that the regulatory approval process for expansion to Solana involved a thorough review of the blockchain, compliance protocols, and internal risk framework, it did not disclose specific examples of seeking approval for stablecoin issuance on other layer-1 and layer-2 blockchains.
This move by Paxos not only demonstrates its dedication to regulatory compliance and innovation but also marks an important step towards broader adoption of stablecoins and the facilitation of new use cases within the digital asset ecosystem.
As of now, SOL is priced at $94.60, showing a substantial 8.2% uptrend in the past 24 hours. Over the last 30 days, SOL has experienced impressive growth, with a 73% increase, indicating the token’s current bullish momentum.