Despite the bankruptcy of FTX, Solana continues to perform strongly and has announced the latest iteration of the SPL token standard, “Token Extensions,” to assist businesses in their transition to the blockchain. This innovation will provide various token functionalities, including confidential transfers and transfer hooks. In addition, Paxos and GMO Trust have adopted Token Extensions to issue stablecoins.
After the bankruptcy of its main investor, FTX, Solana, which had a strong recovery last year, continues to thrive. Its business development capabilities have been highly recognized, with payment giants Visa and Mastercard choosing to collaborate with Solana in the past 12 months. Paxos has also launched a new stablecoin, USDP, on Solana.
Yesterday (24th), Solana announced the latest iteration of its SPL token standard, Token Extensions, which aims to help businesses transition to the blockchain and provide security, compliance, and other services on the Solana network.
According to the announcement, Token Extensions were developed in collaboration with major regulated institutions. They connect to Solana applications through standardized interfaces, allowing the creation of specialized tools and functionalities at the token level. This plug-and-play, regulatory-compliant, multi-functional token functionality significantly reduces development time and resources.
Anatoly Yakovenko, Co-founder and CEO of Solana, stated that Token Extensions are built on the features that make Solana an ideal destination for developers. The announcement listed seven key features of Token Extensions and their potential uses:
1. Confidential Transfers: Protects the confidentiality of user balances and hides transaction amounts. Applications include on-chain salaries, B2B payments, and fund management.
2. Transfer Hooks: Empowers token issuers to control which wallets can interact with their tokens and how tokens interact with users. Uses include KYC verification and copyright enforcement.
3. Transfer Fees: Charges fees at the protocol level. Applications include perpetual royalties, publisher fees, and transaction fees.
4. Permanent Authorization: Allows programs to have irrevocable permissions over tokens. Use cases include automatic subscription services, real-time updates of real-world assets, and regulatory compliance for stablecoins (including freezing and seizure orders).
5. Metadata Pointer: Establishes a verifiable link between tokens and metadata. Uses include token verification and accounts receivable attribution.
6. Default Account States: Configures and enforces token account permissions. Applications include KYC verification.
7. Non-Transferable Tokens: Tokens that cannot be reassigned to any owner other than the issuer. Uses include managing external databases and minting non-transferable NFTs or other assets.
Solana’s ecosystem has seen the rise of many new business cases. According to the announcement, Solana processed 40.7 million user transactions daily in Q4 of last year, attracting the most new developers among non-EVM chains.
In the past year, in addition to Visa and Mastercard choosing to collaborate with Solana, new business cases have emerged, such as Helium’s decentralized wireless network and Boba Guys’ loyalty program powered by Solana, which has multiple branches in the United States.
Furthermore, there are already cases implementing Token Extensions, such as Paxos recently launching their USDP stablecoin utilizing technologies like permanent authorization, metadata pointers, and transfer hooks. GMO Trust, a stablecoin issuer, has also launched the first regulated Japanese yen stablecoin and its USD stablecoin on the Solana network, using permanent authorization, default account states, and metadata pointers.
Anatoly Yakovenko commented on this development:
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