Token Extensions Enable Native Support for Enterprise-Grade Use Cases
Introducing token extensions, the newest iteration of the Solana token program. Built in collaboration with large, regulated institutions, token extensions use a standard interface to connect to Solana applications, allowing the creation of specialized tooling and functionality at the token level. The result is plug-and-play, regulation-friendly, versatile token functionality that significantly decreases engineering time and resources.
Confidential transfers
Protects the confidentiality of users balances within a transfer, as well as hiding transaction amounts
Use cases: Onchain payroll, B2B payments, treasury management
Transfer hooks
Gives the token issuer control over which wallets can interact with their token and how tokens and users interact
Use cases: KYC verification, token- gated access, royalty enforcement
Transfer fees
The ability to charge fees at the protocol level
Use cases: Permanent royalties, publisher fees, transaction fees
Permanent delegation
Allow a program to have irrevocable authority over a token
Use cases: Automatic subscription services, updating real world assets to reflect reality, stablecoin regulatory compliance with freeze & seize orders
Metadata pointer
Establish verifiable links between tokens and metadata.
Use cases: Token verification, accounts receivable attribution
Default account state
Configure and enforce token account permissions
Use cases: KYC verification
Non-transferrable tokens
Makes it impossible to reassign the owner of a token, except by issuer
Use cases: Managing an external database, non-transferrable mints of NFTs or other assets
Start digging into developer resources: Documentation, Guides, Tutorial playlist.
Some stablecoin issuers using Solana have already started implementing token extensions. Paxos, for example, recently leveraged permanent delegation, metadata pointer, transfer hooks, and more to launch their USDP stablecoin. GMO Trust announced the first regulated Japanese yen stablecoin as well as their own U.S. dollar stablecoin on the Solana network, which uses permanent delegation, default account state, and the metadata pointer.
Solana, already a leading blockchain network due the protocol’s scalability-focused design and ecosystem-wide innovations such as state compression, has become the place for developers to innovate and build businesses using blockchain technology. Recent reports noted that the Solana network processed 40.7m daily user transactions in Q4 2023, and Solana was the top non-EVM chain for new developers. The last twelve months have seen payments giants Visa and Mastercard choose to build with Solana, the launch of new stablecoins like Paxos, and the rise of new business use cases from Helium’s decentralized sensor network to real-life tea house company Boba Guys’ Solana-powered loyalty program.
Interested in building with token extensions? Developers can learn how to set up token extensions here, or reach out to set up a call with the Solana Foundation to learn more.
