PayPal has executed its first business transaction utilizing its stablecoin, PYUSD, marking a significant milestone in digital payments. According to a report by Bloomberg, the Silicon Valley-based firm paid an invoice to the multinational accounting giant, Ernst & Young.
Steve Everett, PayPal's Director of Market Development, emphasized the potential for innovation in business-to-business payments, noting that digital currencies can offer tremendous value for these transactions. The funds transferred to Ernst & Young were deposited into the firm's Coinbase account.
To facilitate the payment, PayPal utilized an enterprise-level digital currency hub, although the exact amount paid remains undisclosed. Since its launch over a year ago, PYUSD has seen fluctuations in market capitalization; despite reaching over $1 billion in August, it currently stands at approximately $716 million.
The established USD-pegged stablecoins, such as Tether's USDT and Circle's USDC, significantly overshadow PYUSD, with market caps in the tens of billions. Nevertheless, PayPal continues to expand its digital asset offerings, announcing plans for U.S. business customers to buy, sell, hold, and transfer cryptocurrencies.
Everett pointed out that traditional invoice terms like 'net-30' can hinder cash flow, whereas stablecoins enable 24/7 payments, near-instant fund transfers, and real-time settlements. This progression showcases the evolving landscape of digital transactions.
