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- The Solana Foundation has announced the release of a “token extensions” upgrade to Solana’s SPL token standard.
- This could appeal to stablecoin issuers in an ever-changing regulatory landscape, allowing them to retain control over tokens regardless of the holder.
The Solana Foundation has unveiled a new feature that could become a game-changer for its developers and businesses. Dubbed the “token extensions” upgrade, this could play a key role for stablecoin issuers. Developers releasing tokens on the Solana blockchain will have the capability to retain control over the tokens, regardless of the holder.
This will allow developers to introduce certain restrictions which could be transformative for stablecoin issuers. Experts anticipate that 2024 will bring regulatory interest in stablecoins, particularly in the U.S. These regulations could force developers to make real-time changes to the tokens issued, based on or regardless of the holders. This essentially makes them permission tokens on a permissionless network, as titled in the announcement blog post.
As CNF recently reported, Circle CEO Jeremy Allaire anticipates concrete crypto regulations around stablecoins in 2024 as the government takes a greater interest in the industry. With an ever-changing regulatory landscape, this feature could come in handy for the numerous financial companies looking to release their tokens. This introduces compliance controls for businesses deploying on the Solana blockchain.
The new feature has gone through thorough testing after a year of development. The Solana Foundation notes that the token extensions feature unlocks new business standards and use cases on the Solana blockchain.
Solana has started the year dominating the stablecoin market, with the latest data revealing an increase in stablecoin transfer volume. Blockchain analytics platform Artemis discloses that the transfer volume exceeded $300 billion in January, hitting a new record. It is important to note that the transfer volume reached in December was $297 billion.
Solana (SOL) Sets Path for Bullish 2024
In the wake of this news, Solana’s native token, SOL, has witnessed a 1.8% surge to trade at $88.64. This has seen investors recoup part of their weekly losses following the altcoins 10% plunge.
Despite its short-term bearish trend, Solana (SOL) has made its way into many experts’ bullish list of coins of the year for several reasons. For starters, Solana was a fan favorite for institutions in 2023, this paints a long-term bullish outlook. Furthermore, this has led to speculation that a Solana ETF might be among the first crypto ETFs to hit the market.
The network has further distanced itself from FTX, which saw its performance affected at the beginning of 2023. Similarly, it has put its outages behind it and has now become one of the most reliable and stable networks in the industry.
The network has also celebrated a stable increase in total value locked (TVL), reaching 15.3 million SOL worth more than $1.31 billion.