New York, Friday, October 4, 2024- PayPal has completed its first business transaction using its proprietary PYUSD stablecoin, paying an invoice to Ernst & Young.
The Silicon Valley-based digital payments firm used the transaction to demonstrate the ease of using PYUSD for commercial payments.
Bloomberg reported that the funds were transferred through an enterprise-level digital currency hub, with Ernst & Young receiving the payment in their Coinbase account.
This move is part of PayPal’s broader strategy to push for the adoption of digital currencies in business transactions. PayPal states that stablecoins can provide significant value by enabling faster, 24/7 payments with near-instant settlement times, improving business cash flow and operations.
Despite launching over a year ago and initially surpassing a market capitalization of $1 billion, PYUSD’s current market cap has declined to $716 million. However, PayPal has been actively growing its digital assets arm, recently announcing plans to allow U.S. business customers to buy, sell, hold, and transfer cryptocurrency.
PayPal introduced PYUSD in August 2023, aiming to compete with dominant stablecoins like Tether (USDT) and Circle (USDC), both of which have market caps in the tens of billions. The launch of PYUSD comes as financial institutions increasingly look toward stablecoins to bridge traditional and digital financial systems, providing faster and more efficient transactions.
