Paypal has made a significant step forward in business payments by completing the first transaction using the Paypal USD (PYUSD) stablecoin. The milestone highlights the role of digital currencies in streamlining cross-border transactions, with Paypal partnering with Ernst & Young LLP.
Paypal Completes First Stablecoin PYUSD Transaction
Paypal Holdings Inc. has completed the first business transaction using its stablecoin, Paypal USD (PYUSD), as part of a move to demonstrate how digital currency can streamline business payments.
Last week, Paypal paid an invoice to Ernst & Young LLP using PYUSD, facilitated through SAP SE’s digital currency hub platform, which allows businesses to make instant, 24/7 digital payments. While the exact amount of the invoice was not disclosed, the transaction highlights how stablecoins, pegged to traditional currencies, can simplify cross-border transactions. PYUSD, which Paypal introduced last year, is pegged to the US dollar and has a market capitalization of nearly $700 million.
Jose Fernandez da Ponte, Paypal's senior vice president of blockchain, cryptocurrency and digital currencies, stated:
The corporate environment is very suitable for this… This is a very reasonable conversation to have with the CFO.
Stablecoins are increasingly popular with businesses, especially in regions where traditional currencies are highly volatile, as they offer faster payments and reduce reliance on third parties. Paypal’s use of PYUSD in this transaction demonstrates its advantages in the corporate world. Fernandez da Ponte highlighted Paypal’s collaboration with reputable industry players to validate the usefulness of stablecoin payments, saying:
Paypal, SAP, EY – those are very, very famous names.
What do you think about Paypal’s move to use the PYUSD stablecoin in its transactions? Let us know in the comments below.
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