Solana plans to launch a SOL-backed stablecoin to counter competition

Solana is considering a SOL-backed stablecoin to enhance its ecosystem amidst competition from Hyperliquid’s USDH. Mert Mumtaz from Helius Labs indicated that Solana is unexpectedly funding its competitor with USDC, which holds a significant 70% of the stablecoin market.

Critics worry that this move might create complexities among layer-1 chains. Solana’s co-founder and industry investors have shown support for this initiative, emphasizing the potential for increased revenue and yield capture.

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