According to CoinDesk, the Solana Foundation has announced the launch of its token extensions upgrade to the Solana SPL token standard. The upgrade, which has been in development for over a year, aims to enhance compliance controls for businesses building tokens on the Solana blockchain. Token extensions will enable businesses to hard-code various features into their tokens, such as whitelisting, automatic transfer fees, and confidentiality on transfers.
The Solana Foundation believes that this upgrade could be particularly appealing to stablecoin issuers. Paxos and Japanese company GMO Trust are both issuing stablecoins on the Solana blockchain that utilize token extensions. A spokesperson for the Solana Foundation stated that token extensions provide issuers with the optionality to comply within a changing regulatory environment.
There are five extensions that developers can mix and match, including transfer hooks, transfer fees, confidential transfers, permanent delegate authority, and non-transferability. These features aim to improve compliance, security, and control for token issuers and holders on the Solana blockchain.