TLDR
- PayPal completed its first business payment using PYUSD stablecoin to Ernst & Young
- The payment was made through SAP’s digital currency hub
- PYUSD has a $699 million market cap, ranking 8th among stablecoins
- PayPal is expanding digital asset capabilities for business users in the US
- The stablecoin market is attracting more players as regulations emerge globally
PayPal, a leading fintech company, has taken a significant step in the adoption of its proprietary stablecoin, PayPal USD (PYUSD), by completing its first business-to-business payment.
The transaction, made to the Big Four accounting firm Ernst & Young, marks a milestone in PayPal’s efforts to integrate digital currencies into mainstream financial operations.
The payment was processed through SAP’s digital currency hub, demonstrating the potential for stablecoins to facilitate instant corporate transactions.
While the exact amount of the invoice was not disclosed, the successful completion of this transaction highlights the growing interest in using digital assets for business purposes.
PYUSD, launched by PayPal in August 2023, is a stablecoin pegged to the US dollar. It is backed by US dollar deposits and short-term US Treasurys, providing a stable value that makes it suitable for everyday transactions.
This stability is a key feature that sets stablecoins apart from more volatile cryptocurrencies.
According to data from DefiLlama, PYUSD currently has a market capitalization of $699 million. This places it eighth among the largest stablecoins in the market.
The relatively quick growth of PYUSD’s market cap indicates a level of trust and adoption among users since its recent launch.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency and digital currency, emphasized the suitability of stablecoins for enterprise environments.
He noted that discussions about implementing stablecoin payments are becoming more common in corporate finance circles, suggesting a growing acceptance of digital currencies in traditional business settings.
This move is part of PayPal’s broader strategy to expand its digital asset capabilities. In September, the company announced that business users in the United States, except those in New York, would be able to buy, sell, and trade cryptocurrencies directly from their PayPal accounts.
This expansion of services indicates PayPal’s commitment to integrating digital assets into its platform.
The stablecoin market has been seeing increased activity and interest from various financial players. Companies like Robinhood and Revolut are reportedly considering launching their own stablecoins in certain jurisdictions.
This trend is partly driven by the emergence of clearer regulations, such as the European Union’s Markets in Crypto-Assets (MiCA) regulation, which is expected to reshape the stablecoin market with higher compliance standards.
Currently, the stablecoin market is dominated by Tether’s USDT, which has a market capitalization of $119.7 billion. USD Coin (USDC) follows as the second-largest stablecoin with a market cap of $35.3 billion.
PayPal’s entry into this market with PYUSD represents a significant move by a mainstream financial services provider.
