PayPal has successfully completed its first business-to-business transaction using its proprietary stablecoin, PayPal USD (PYUSD).
PayPal has successfully completed its first business-to-business transaction using its proprietary stablecoin, PayPal USD (PYUSD). The payment, made to Ernst & Young through SAP's digital currency hub, marks a significant milestone in the adoption of digital currencies for corporate transactions.
While the exact amount remains undisclosed, this inaugural payment demonstrates the practical application of stablecoins in corporate finance, offering a glimpse into the future of instant, blockchain-based business transactions.
The fact that Ernst & Young, one of the Big Four accounting firms and PayPal's auditor, received the payment showcases the potential for mainstream adoption of digital currencies in traditional business settings.
Jose Fernandez da Ponte, PayPal's senior vice president of blockchain, cryptocurrency and digital currencies, emphasized the suitability of stablecoins for enterprise use. "The enterprise environment is very well-suited for it," he noted, adding that "it's a very rational conversation to have with the CFO."
Launched in August 2023, PYUSD is backed by US dollar deposits and short-term US Treasuries, ensuring stability and reliability for users. The stablecoin has quickly gained traction, achieving a market capitalization of $694 million, according to CoinMarketCap data.
This milestone comes as part of PayPal's broader strategy to expand its digital asset capabilities. Just last month, the company extended crypto trading services to its business users across the United States, excluding New York, allowing them to buy, sell, and trade cryptocurrencies directly through their PayPal accounts.
The stablecoin market, currently dominated by Tether's USDT with a market cap of $119 billion, followed by USDC at $35 billion, is attracting increasing attention from major financial players. Companies such as Revolut are reportedly considering launching their own stablecoins in various jurisdictions.
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