On December 23, 2023, Paxos officially announced it became a multi-chain stablecoin issuer with the expansion of USDP to Solana - the blockchain network that has been receiving a lot of attention recently.

This information marks the first time Paxos has been allowed to expand its operations beyond the Ethereum blockchain under the supervision of the US financial regulator. This is a strategic move by Paxos in the context of the very competitive stablecoin market, where competitors such as Tether and Circle are racing to dominate the market.

Paxos has received approval from the New York Department of Financial Services (DFS) to expand USDP from Ethereum to Solana after thorough testing. However, the company has not disclosed the timeline of the review process

Paxos became the first cryptocurrency company to secure a trust charter under the new digital asset management framework implemented by DFS in 2015. The company received DFS approval to issue stablecoins first in 2018, named 'Paxos Standard', then renamed USDP three years later

Before the latest Solana expansion, Paxos only issued USDP on Ethereum due to DFS restrictions. Over the years, the company has attracted large financial companies to participate when calling for $540 million in investment capital from Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.

At the time of writing, USDP's capitalization reached about 370 million USD, ranking 9th among the top stablecoins by total market capitalization with a daily trading volume of more than 6 million USD. USDP is far behind USDC and USDT in the stablecoin race and it is clear that Paxos needs to do more to compete with other giants.

Solana network situation recently

First of all, let's talk about the price of the $SOL token - a famous token that has been subject to crazy price increases during the previous "uptrend". Rumored to be closely involved with Alameda Research, $SOL seemed unlikely to recover after the event that FTX had a spectacular growth of 600% within 2 months from October 2023, from the price range of 20 USD to 120 USD. Solana's capitalization has at times surpassed BNB and become the top 3 projects with the largest market capitalization.

Next is the huge airdrop wave on the Solana network, started by Jito when this project rewards a total of more than 200 million USD to early users, together with Jupiter Exchange or Bonk - a meme that drew a lot of attention due to its price in recent days.

The above factors have contributed to the transaction volume (according to Defillama) on Solana surpassing all other networks including Ethereum, when the transaction volume in the most recent 7 days (at the time of writing) reached 10.3 billion USD. Solana's TVL also achieved incredible growth when it was outside the top 10 in mid-July, rising to the top 5 position at the present time with 1.3 billion USD in locked value at the moment.

Potential with VNST when moving to Solana

With that Solana is attracting a large number of users, VNST aims to provide a safe, stable and convenient financial solution for users, helping them easily participate in the financial technology market. can expect to expand operations and reach a new user base when issuing stablecoins on this network.

Solana is also a blockchain network that owns a large number of users in Vietnam, and at the same time, developers in the world's leading crypto popularization country, pioneered by Solana Superteam Vietnam are also working extremely actively to Develop an ecosystem with many useful technology products.

Moving to the Solana network allows VNST to gain deeper access to the rich ecosystem here and expand cooperation with many projects, thereby enhancing VNST's use case and helping users to experience VNST in a convenient and useful way.

Conclusion

Paxos' new move is likely to push USDP to gradually catch up with its competitors. This action can be a reference for VNST in its journey to develop an innovative and sustainable digital finance for the global cryptocurrency community in general and Vietnam in particular.

VNST, with the mission of providing safe, stable and convenient financial solutions for users, helping them easily participate in the financial technology market, will continue to contribute to the community to improve understanding of electricity money. electronics and blockchain technology.