PayPal has made its first corporate payment using PayPal USD (PYUSD), a stablecoin pegged to the US dollar. According to a Bloomberg report on October 3, the payment was made to Ernst & Young via SAP’s digital currency hub. Ernst & Young serves as PayPal’s auditor.
The transaction showcases how stablecoins can facilitate instant payments for corporations. PayPal introduced PYUSD in August 2023, backed by US dollar reserves and short-term US Treasurys. Currently, PYUSD has a market capitalization of $699 million, ranking it eighth among stablecoins, according to DefiLlama.
PayPal’s senior vice president of blockchain and cryptocurrency, Jose Fernandez da Ponte, noted that stablecoins are “well-suited” for enterprise payments.
See Related: PayPal Expands Cryptocurrency Services To U.S. Businesses
PayPal Expands Crypto Services
Recently, PayPal has expanded its digital asset offerings, allowing US business users (except in New York) to buy, sell, and trade cryptocurrencies. The stablecoin market is attracting new players, with companies like Robinhood and Revolut considering launching their stablecoins as regulations take shape.
Despite growing competition, Tether’s USDT remains dominant with a market cap of $119.7 billion, far ahead of USD Coin (USDC), which has a market cap of $35.3 billion.