PayPal has executed its first corporate payment using its own stablecoin, PayPal USD (PYUSD).
This transaction was sent to Ernst & Young—PayPal’s auditing firm and a global leader in accounting—via SAP’s digital currency platform.
As reported by Bloomberg on October 3, the financial terms of the invoice have not been revealed.
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Stablecoins are fixed-value cryptocurrencies generally pegged to a fiat currency or an exchange-traded commodity. For this reason, stablecoins are less volatile, making them particularly practical for daily transactions.
Introduced in August 2023, PYUSD is backed by assets such as the US dollar, short-term Treasury bills, and other cash-like instruments. It is currently ranked as the 6th largest stablecoin with a market capitalization of over $694 million.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currency, remarked:
The enterprise environment is very well-suited for <stablecoins>. It’s a very rational conversation to have with the CFO.
PayPal’s successful use of PYUSD in a corporate payment may pave the way for digital assets to become a standard in business transactions.
In September, PayPal announced that business customers across the United States—excluding those in New York—can now buy, sell, and trade cryptocurrencies directly through their PayPal accounts.
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
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