- Solana introduced 13 token extensions on January 24, 2024. Except for private transfers, all extensions are currently ready for use.
- It combines the security and compliance controls of allowed blockchain environments with the operational efficiency of public blockchains.
- Sheraz Shere, President of Payments at the Solana Foundation, emphasized the attractiveness of the network for large-scale companies entering the Web3 space.
Solana has announced 13 new token extensions for ecosystem developments: What do token extensions mean?
Solana Announces 13 New Token Extensions
Solana (SOL) recently added a groundbreaking development to its ecosystem: token extensions. This innovative feature offers a range of functionalities developed as part of the SPL token evolution of the network and is also a significant advancement similar to Ethereum’s (ETH) ERC-20 token standard.
On January 24, 2024, Solana introduced 13 token extensions. Except for private transfers, all extensions are currently ready for use. The availability of private transfers is expected to come with version 1.17 of the network, which is expected to be adopted in February 2024. These extensions represent a package of ready solutions.
It combines the security and compliance controls of allowed blockchain environments with the operational efficiency of public blockchains. This innovative approach positions the network as a leader in the public blockchain space, significantly reducing the required engineering time and resources.
Token extensions have various use cases and can be customized to serve various sectors such as stablecoins, real-world assets (RWA), and payments. Key features include transfer hooks, transfer fees, private transfers, persistent representation authority, and non-transferability.
These extensions enable features such as complex token interactions, sustainable revenue models, encrypted transaction amounts, absolute token issuance authority, and identity capabilities. Anatoly Yakovenko, Co-Founder and CEO of the network, emphasized the importance of token extensions in enhancing Solana’s integrated developer and user experience. Yakovenko said, “Token extensions are based on features that make Solana an ideal target for developers.”
Sheraz Shere, President of Payments at the Solana Foundation, highlighted the network’s appeal to large-scale companies entering the Web3 space. Shere stated that token extensions provide critical features for large regulated organizations, allowing for the seamless adoption of blockchain technology.
Adopted by Industry Giants
Industry leaders such as Paxos and GMO-Z Trust Company Inc. (GMO Trust) are already using these extensions on the Solana blockchain to issue stablecoins. Paxos, as a leading regulated blockchain infrastructure platform, expanded its stablecoin issuance to Solana in December 2023.
Similarly, GMO Trust announced the first regulated Japanese yen stablecoin and an American dollar stablecoin using token extensions for innovation and compliance. As companies like Visa, Worldpay, Stripe, Google, and Shopify step forward to take advantage of Solana’s performance benefits, the network is positioned to lead the future of Web3.
