Solana is enhancing its token functionality to provide developers with more control through customizable token ownership and usage rules.

The Solana (SOL) Foundation recently announced the activation of “token extensions” on Solana’s SPL token standard, a project known as Token-2022 that has been in development for over a year.

These token extensions aim to strengthen compliance capabilities for entities creating tokens on the Solana network. Businesses can now embed specific functionalities directly into their tokens, such as whitelisting, automatic transaction fees, and confidential transfer mechanisms, offering significant upgrades from previous capabilities.

Solana’s extensions come in two primary forms: mint and account extensions. The platform has introduced various mint extensions, including confidential transfers to maintain transaction privacy, interest-accruing tokens, and transfer hooks that verify token transfers’ permissibility and revoke transfers that do not meet the set criteria.

This update is particularly beneficial for stablecoin issuers, with notable crypto service providers like Paxos and GMO-Z.com Trust Company already utilizing Solana’s new token extensions for their stablecoin operations on the platform.

Following this announcement, SOL’s market price has seen a positive reaction, with the altcoin up by nearly 6% in the past 24 hours.

For more information on the latest developments in the cryptocurrency space, stay tuned to Global Crypto News.

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