Reportedly, PayPal planned to launch its stablecoin on the Solana blockchain network in 2022, but for some reason scrapped the decision.
PayPal is a global digital banking platform. The services of this platform are popular worldwide for its secure digital banking services. For a few years now, PayPal has also been offering crypto asset trading.
Just a few days ago, PayPal launched its stablecoin “PayPal USD” on the Ethereum blockchain. The newly launched stablecoin will be able to be used on any type of online platform (Crypto, fiat, Web3, etc.) in the near future.
On August 7, 2023, Chinese crypto blogger Colin Wu reported that two insiders claimed that PayPal was planning to launch its stablecoin on the Solana blockchain network in partnership with the FTX crypto exchange, now a bankrupt company.
The report noted that the PayPal company scrapped its stablecoin launch plan in 2022 due to the demise and bankruptcy of the FTX empire.
FTX, Solana and Doom
In November 2022, the FTX crypto exchange went bankrupt following an FTX-linked financial report by the Coindesk media.
FTX and its sister company Alameda Research were the main investor in the Solana (Sol) crypto project. With the fall of the FTX exchange, the Solana coin (Sol) crashed heavily to $18.
The Solana blockchain is unique in the crypto sector due to its unique network-scale protocol, Proof-of-history (PoH). In 2021, the Solana project gained huge popularity, but in December of the same year, the network faced a smart contract bug. In 2022, the Solana blockchain faced several network outages due to some new hidden bugs.
The whole thing was enough to mention why the PayPal team decided not to launch a new stablecoin on the Solana network.
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