The development team of the Layer 1 blockchain Solana, Solana Labs, has introduced a new feature called “Token extensions” for the network’s SPL tokens. Token extensions are a series of programs similar to the Ethereum ERC-20 token standard.
A spokesperson told The Block that token extensions are a new SPL token standard that enhances existing functionality. Token extensions add dozens of new use cases, including enhanced token interactions, transfer fees for each Swap token, and zero-knowledge proof-driven confidential transfers. According to a company statement, the main purpose of token extensions is to assist businesses in transitioning to the chain and provide streamlined security, compliance, and other services on the Solana network.
According to a tweet from Solana’s official account, token extensions have 13 features, including: confidential transfers, transfer fees, transfer hooks, permanent delegate authority, metadata, metadata pointers, default account state, non-transferrability, minting end authority, immutable owners, interest-bearing tokens, transfer memo requirements, and CPI protection. Additionally, some token extensions can be used in combination.
Solana co-founder and CEO of Solana Labs, Anatoly Yakovenko, stated in a release that cryptocurrency service company Paxos and New York stablecoin issuer GMO-Z.com Trust Company have adopted Solana’s token extensions to issue stablecoins.