The popular Ethereum competitor, Solana, has managed to survive the FTX collapse and is now on a trajectory of growth. Recent developments suggest that Solana is poised to remain a significant player in the blockchain space. A recent announcement from Solana’s official account focused on the approval granted by a U.S. financial regulator.
Leading stablecoin issuer Paxos received authorization on January 17 to launch its stablecoin on the Solana network. This comes amidst a competitive battle for market share with rivals like Circle and Tether, where the New York Department of Financial Services (DFS) has made a decision in favor of Solana.
Walter Hessert, the strategy chief at Paxos, highlighted the company’s regulated status, stating, “Paxos is the most regulated stablecoin issuer in the world. We are the only firm that issues regulated stablecoins on a large scale.”
This development is set to significantly enhance the value of the Solana network and foster its adoption. Hessert pointed out that Solana’s speed and cost-efficiency compared to Ethereum make it an attractive option for Paxos’s partners, who aim to implement stablecoin for various use cases, from cross-border remittances to payments for goods and services.
The endorsement from Paxos not only suggests a vote of confidence in the Solana network but also indicates that Paxos is willing to provide more substantial support than previously anticipated, which could further accelerate Solana’s adoption.