Bitget believes that PayPal’s involvement in the stablecoin market will significantly boost global awareness and help bring the industry into the mainstream.
Cryptocurrency exchange Bitget announced today that it has added support for PayPal’s PYUSD stablecoin on the Solana blockchain, extending the digital asset to a broader range of users.
The stablecoin, launched in August 2023, is backed 1:1 by the United States dollar. The digital asset is fully collateralized by national reserve assets such as the US Treasuries and other cash equivalents, ensuring that it maintains its peg to the US dollar.
Expanding Access to PYUSD Stablecoin
The move was part of PayPal’s strategy to expand its business offerings and deepen its presence within the crypto economy.
At launch, the stablecoin was initially deployed on the Ethereum blockchain, limiting the availability to just one network.
However, Bitget’s support of PYUSD on Solana now opens up access to the asset across a more diverse user base. This move is expected to increase the stablecoin’s accessibility and appeal.
In an announcement on Thursday, the company disclosed that the integration of PYUSD on Solana will likely bolster the network’s position in the stablecoin market, reinforcing its utility in facilitating financial transactions and other blockchain-based services.
As a Proof-of-Stake (PoS) network, Solana is recognized for processing transactions at higher speeds and lower costs compared to Ethereum. This efficiency makes it more attractive to users seeking faster transactions with minimal fees. Bitget believes that the network’s robust infrastructure and appeal will help drive the adoption of PYUSD among both retail and institutional investors.
“Additionally, the integration of PYUSD on platforms like Bitget positions it to capitalize on the growing interest in stable, fiat-backed assets,” the company added.
The Growing Stablecoin Market
Currently, the stablecoin designed specifically to facilitate cross-border payments and transfers, has a market capitalization of approximately $961 million, as shown on CoinMarketCap. At the beginning of April, the digital asset’s market cap fell to $190 million.
Despite the impressive growth, the figure pales in comparison to other major stablecoins like Tether’s USDT and Circle’s USDC, which have market capitalizations of around $117.47 billion and $34.91 billion, respectively.
The stablecoin market has experienced significant growth over the years and is now valued at approximately $150 billion. According to CoinMarketCap, the transaction volume for stablecoins across the industry stands at around $65.33 billion.
Industry experts predict that the stablecoin market will grow exponentially, potentially reaching $2.8 trillion within the next four years.
Bitget believes that PayPal’s involvement in the stablecoin market will significantly boost global awareness and help bring the industry into the mainstream. As a leading global payment company, the company l is expected to increase confidence and trust in the crypto space.
“As one of the most trusted names in global finance, PayPal’s entry into the stablecoin space with PYUSD brings a level of credibility that can help propel stablecoins into the mainstream,” the company concluded.
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