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Solana Unveils "Token Extensions" to Boost Use Cases

Solana's upgrade, focused on compliance, enables businesses to embed various features into their tokens, such as whitelisting, automatic transfer fees, and confidential transfers.

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The Solana Foundation, the team behind the Layer 1 blockchain, has launched an innovative suite of token extensions, redefining the landscape of blockchain capabilities. These extensions, augmenting the SPL Token standard, aim at offering a higher level of integrated developer and user experience in public network token programs.

According to details published on Wednesday, the token extensions represent a suite of turnkey solutions, tailored to cater to the growing onchain needs of businesses. This suite equips developers, enterprises, financial institutions, and Solana-native teams with sophisticated token functionalities, previously unattainable in the blockchain realm. These functionalities merge the security and compliance controls of permissioned blockchain environments with reduced engineering complexities, all within one of the world’s most prominent public blockchains.

The token extensions are tailored for diverse industries, including stablecoins, real-world assets (RWA), and payments. Key features include transfer hooks, transfer fees, confidential transfers, permanent delegate authority, and non-transferability, each designed to enhance token issuer control and user interaction, Solana said in the announcement.

Industry giants Paxos and GMO Trust are already utilizing these extensions. Paxos, a regulated blockchain and tokenization platform, recently expanded its stablecoin issuance to Solana. Similarly, GMO Trust announced the launch of the first regulated Japanese yen stablecoin and a US dollar stablecoin on the Solana network. Stablecoin issuer Circle also disclosed the introduction of its EURC stablecoin on Solana in December 2023.

Sheraz Shere, head of payments at the Solana Foundation, highlighted the network’s growing appeal in the enterprise domain. "Solana is increasingly becoming the go-to blockchain for enterprises venturing into web3. Major companies like Visa, Worldpay, Stripe, Google, and Shopify have already leveraged Solana’s performance benefits, launching solutions and applications unique to our platform. With token extensions, we’re broadening the possibilities for enterprise blockchain adoption."

Amira Valliani, head of policy at the Solana Foundation, discussed the extensions' role in simplifying enterprise adoption of blockchain. “Many enterprises are eager to integrate blockchain technology while adhering to their compliance standards. Token extensions streamline these processes, ensuring that companies can focus on innovation rather than on customizing smart contracts for compliance.”

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