PayPal USD (PYUSD) is now available on Solana, giving developers a new stablecoin option for their projects. With easy access to test tokens on the Solana Devnet faucet, extensive developer documentation, and compatibility with the broader Solana ecosystem, building with PYUSD has never been easier to access.
This article explains what PYUSD is, where and how to build with PYUSD, and how developers can leverage this new stablecoin in their projects.
What is PYUSD?
The PayPal USD (PYUSD) stablecoin is issued and managed by Paxos Trust on behalf of PayPal. Its goal is to maintain a stable 1:1 value of the US dollar, providing the cryptocurrency market with a reliable and secure digital version of the US dollar. By combining the payments expertise of PayPal with the technological advantages of blockchains like Ethereum and Solana, PYUSD seeks to transform digital payments.
PYUSD was initially launched on the Ethereum blockchain and later expanded to the Solana blockchain according to PayPal’s announcement on May 29, 2024. Solana, one of the leading blockchain networks known for its rapid adoption, has a robust ecosystem with millions of daily transactions and thousands of active transactions. developers.
Built for speed, scalability, and cost-effectiveness, this high-performance network targets block times of approximately 400 milliseconds and supports thousands of transactions per second with average fees of fractions of a cent.
Its global accessibility ensures that PYUSD transfers are settled almost instantly at minimal costs, regardless of transaction size, making it scalable for large user bases and globally accessible to anyone with an Internet connection. With the flexibility and accessibility offered by this multi-chain method, users can choose the blockchain that best meets their requirements.
Why build with PYUSD?
PYUSD combines the payment expertise of PayPal with the technical expertise of Solana. The stablecoin, which was previously only available on Ethereum, is now also available on Solana, offering highly cost-effective near-instant settlements, available 24/7 and globally. Use cases for PYUSD include:
Cross-border P2P payments
One can transfer PYUSD to eligible recipients worldwide using the Solana wallet, with transactions settling almost instantly and at minimal cost.
Transfers between companies
With PYUSD’s programmable features, businesses can develop their own services to facilitate near-instant, cost-effective cross-border transfers with minimal technology requirements.
Microtransactions
PYUSD facilitates real-time, low-cost microtransactions on Solana. With PYUSD, Web3 traders such as non-fungible token (NFT) marketplaces and blockchain-based gaming platforms can integrate with fiat bank accounts using native cryptocurrencies.
Global payments
PYUSD eliminates the need for a complex network of multiple banking networks, currencies and digital wallet systems, simplifying global payments.
What are Solana token extensions and their role in the development of PYUSD?
Token Extensions (TEs) on the Solana blockchain are powerful tools that extend the functionality of the Solana Software Library (SPL) Token Program, which is the standard for token creation. TEs are composable modules that can be applied to a token to provide specific features or functionality. Simple additions of metadata to complex compliance and governance systems are examples of such improvements.
Specific uses of TE PYUSD in Solana are:
- Confidential Transfers: Allow merchants to keep transaction amounts confidential while maintaining visibility of other transaction details for regulatory purposes.
- Transfer Hooks: Allow developers to call custom scripts during token transfers for individuals and traders using PYUSD.
- Memo Fields: Allow senders and recipients to include information with payments, creating a more user-friendly experience for payments and everyday business transactions.
These token extensions provide the following benefits for PYUSD:
Improved functionality
TEs allow PYUSD transactions to be confidential to users while maintaining transparency for regulators, striking a balance between privacy and compliance.
Standardized information
The metadata extension enables unified storage of basic token information, such as name, symbol and logo, simplifying integration with different platforms.
Programmable control
The Transfer Hook extension allows custom logic to be executed on each token transfer, providing greater control over how PYUSD interacts with wallets and applications.
Flexible fees
The transfer fee extension allows the implementation of transfer fees, which can be used for various purposes, such as network maintenance or revenue generation.
Audit required
The Permanent Representative Annex allows the designated authority to manage PYUSD tokens for compliance purposes, ensuring compliance with regulatory requirements.
Account management
The Mint Closure Authority extension allows Mint accounts to be closed and resources restored, ensuring efficient management of PYUSD tokens.
Benefits for developers building with PYUSD using token extensions
Solana blockchain developers can unlock the full potential of programmable funds and assets by leveraging the SPL Token program with token extensions. This involved tedious integration of numerous codebases and protocols.
However, developers now have native access to the full range of programming features when creating tokens with token extensions enabled. Using this simplified method, developers can enable or disable certain features for each feature, customizing their tokens to fit the specific requirements of their applications.
Additionally, TEs are industry-standard, well-tested and certified extensions, providing PYUSD with enterprise-grade security and reliability. Because they are reusable standards, developers can build and test applications faster.
As plug-and-play modules, TEs provide a quick and proven way to add blockchain and PYUSD to applications. Additionally, since TEs is an open standard, PYUSD can be used and integrated not only with PayPal but also with any other compatible wallet, exchange or library. This adaptability encourages innovation in digital payments by allowing developers to freely experiment and expand PYUSD as needed.
How to build with PYUSD on Solana
The steps below will help understand how interested developers can start creating with PYUSD on Solana.
Step 1: Get PYUSD
Obtaining PYUSD is the first step to working with it. One can buy, sell and use PYUSD on PayPal or Venmo wallets. PayPal’s Consumer Protection Policy is available to anyone using the PayPal ecosystem to purchase PYUSD.
Alternatively, one can obtain PYUSD using fiat funds from major Solana wallets like Phantom and cryptocurrency exchanges like Crypto.com. Developers can test PYUSD on Solana’s Devnet via the PYUSD faucet.
Step 2: Understand the technical details
PYUSD Workshop Address
To integrate PYUSD into an application, developers can use the PYUSD mint address:
2b1kV6DkPAnxd5ixfnxCpjxmKwqjjaYmCZfHsFu24GXo
On the Solana blockchain, this mint address uniquely identifies the PYUSD token. To get Mint account details, one can use Solana Explorer.
Token Extensions
PYUSD is built on TEs, which mark the next iteration of the Solana software library standard and provide ready-to-use compliance frameworks, reducing development time. TEs introduce new approaches to improve the functionality of tokens.
Core features like minting, transferring, and staking tokens were part of the initial token program, but TEs brought additional features like secret transfers, expanded metadata, custom transfer logic, and more again (as described in the section above).
Step 3: Merge PYUSD
PYUSD is accessible on major Solana wallets, exchanges including Phantom, and centralized platforms like Crypto.com. Additionally, eligible users can buy, sell and use PYUSD within the PayPal ecosystem, including PayPal and Venmo.
Developers can easily obtain PYUSD and integrate it into their Solana projects. PYUSD testing is available through the Solana Devnet faucet for development and testing in an isolated environment. To understand how to build with PYUSD, they should also learn about token expansions before embarking on the development process.
The open source nature of PYUSD and its integration with Solana TEs allows developers to seamlessly integrate it into their applications, enabling easy acquisition, spending, and transfer of PYUSD within their applications. For qualified users, PYUSD’s compatibility with the Solana ecosystem, including various wallets and platforms, makes digital transactions easier to access.
Additionally, Solana and PayPal developer documentation provides detailed information on the integration of PYUSD tokens and Solana-based tokens. Developers are encouraged to take advantage of available token resources when integrating PYUSD into their applications. These resources include PYUSD icons with sizes 128 x 128 pixels and 220 x 219 pixels. To download, developers can right-click the image and select “Save Image As…”. Additionally, the PYUSD token is available in SVG format via PayPal objects.
By building with PYUSD, developers can create efficient, comprehensive, and reliable payment experiences for the future of digital commerce.
The future of the PYUSD stablecoin
There are exciting possibilities for PYUSD as new use cases emerge and the coin adapts to changing regulatory environments. Real world assets (RWA) are an area ripe for growth for PYUSD. By enabling transparent and near-instantaneous transactions in the RWA space, PYUSD can help improve liquidity in a largely illiquid real estate market.
How stablecoin regulations change in the United States will likely impact PYUSD, which will need to adapt in order to ensure compliance. Interoperability between chains is another crucial element for the future of PYUSD. Expanding to other blockchains will help the stablecoin promote greater adaptability and accessibility.
Future developments in PYUSD’s security features and smart contracts will also play a crucial role in its development. By improving the power of smart contracts, new features such as automated compliance and more sophisticated financial tools could emerge.
