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.
