To demonstrate that stablecoins pegged to the U.S. dollar can be easily used for commercial payments, PayPal has completed its first business transaction using its proprietary token. PYUSD
+0.082%
Bloomberg reported on Thursday.
The Silicon Valley-based digital payments company said it paid its invoices to multinational accounting firm Ernst & Young, according to the report.
“B2B payments are poised for innovation, and digital currencies can deliver incredible value in these use cases,” Steve Everett, director of market development at PayPal, said in a Coinbase blog post. The funds paid by PayPal to Ernst & Young were deposited into the accounting firm’s Coinbase account, the post said.
When paying bills, PayPal relied on an enterprise-level digital currency hub to complete the transaction, according to Bloomberg. The amount paid by PayPal is unknown.
PYUSD market capitalization decreases
PayPal launched its USD stablecoin, PYUSD, over a year ago. According to The Block Price Page, PYUSD’s market cap surpassed $1 billion in August, while the stablecoin’s current market cap is around $716 million. The dominant USD-pegged stablecoins, Tether’s USDT and Circle’s USDC, are significantly larger than PYUSD and each have market capitalizations in the tens of billions of dollars.
However, the payments company has been busy lately, frequently announcing new partnerships and initiatives designed to expand its digital asset segment and increase the utility of its PYUSD stablecoin. Last week, PayPal announced plans to allow U.S. corporate customers to buy, sell, hold and transfer cryptocurrencies.
“Requiring terms such as ‘net-30’ to pay invoices can limit cash flow and negatively impact business operations,” Everett said. “Digital currencies like stablecoins allow payments to be made 24/7, with funds transferred almost instantly and settled in near real time.”
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