Polygon Targets Solana’s $5.76T Stablecoin Market With New Payments Integration

Polygon Network is partnering with Solana on its Open Money Stack, which connects bank accounts, crypto wallets, and other services. This follows a string of recent blockchain projects, including adding Tron support and acquiring Coinme.

Stablecoin Volumes Drive New Demand

Polygon Labs is expanding the Open Money Stack’s suite to cater to more networks recording huge user activity. The offering on Solana will let builders accept funding directly from bank accounts, handle payouts, and other multiple crypto services.

Stablecoin demand topped the reasons for the expansion to Solana and other networks. Earlier this month, it integrated on Tron, still based on stablecoin and user activity. 

Both networks posted huge numbers this year, capturing a huge chunk of institutional and retail demand. Tron recorded $6.94 trillion worth of stablecoin transfers while Solana saw $5.76 trillion between January and October alone.

“As that activity grows, connecting Solana to bank accounts, wallets and global payout networks allows businesses to deliver stablecoin payments to more customers and markets.” Vibhu Norby, the chief product officer of the Solana Foundation, added.

These assets are growing in popularity because of institutional demand for digital asset products in the same period. Largely, stablecoins are seen as gateway or bridge assets that corporate holders use to gain exposure to other assets. 

Stablecoins are the go-to coins before investors make a foray into other crypto like BTC, XRP, SOL, etc because they are tied to the dollar and lower risk. Also, most products lean towards users integrating stablecoins and then gaining decentralized finance (DeFi) exposure with these assets. 

According to most users, this adds to the excitement of traditional firms already exploring stablecoin infrastructure. Banks moved on these assets to lower the cost of cross-border payments and improve processing speed. 

As expected, volumes soared to new all-time highs on the back of fresh capital. However, regulators flagged instances of the asset class being deployed in illicit transactions, calling for tighter regulations. Generally, laws have become more positive, driving investment, though scrutiny and enforcement rose. 

Marc Boiron, Polygon Lab’s CEO, explained that wide adoption and diversity paved the way for new integrations. “We hear from businesses that their customers and payment activity are already spread across networks and that they don’t want to force a chain choice or stitch together a bank provider, wallet, routing service and payout partner for each one.”