**PayPal Completes First Payment Using PYUSD Stablecoin**

PayPal has made waves in the fintech world by completing its first business payment using its own USD-pegged stablecoin, PYUSD. The transaction, reported by Bloomberg on Oct. 3, was made to Ernst & Young via SAP’s digital currency hub. While the invoice amount remains undisclosed, this move showcases the potential of stablecoins for instant corporate payments.

Launched in August 2023, PYUSD is backed by US dollar deposits and short-term US Treasurys, boasting a market cap of $699 million. This positions it as the eighth-largest stablecoin, according to DefiLlama.

Stablecoins, pegged to fiat currencies like the US dollar, offer stability, making them ideal for everyday transactions. PayPal’s senior VP of blockchain, Jose Fernandez da Ponte, emphasized the suitability of stablecoins in corporate environments.

In a bid to expand its digital asset capabilities, PayPal recently allowed US business users (excluding New York) to buy, sell, and trade crypto directly from their accounts. The stablecoin market is seeing increased interest, with companies like Robinhood and Revolut eyeing their own stablecoin launches.

Currently, Tether’s USDT leads the stablecoin market with a $119.7 billion market cap, followed by USD Coin (USDC) at $35.3 billion. As regulations like the EU’s MiCA come into play, the stablecoin landscape is set for significant changes.