Payments leader PayPal has allegedly finalized its inaugural business transaction using the dollar-pegged stablecoin it introduced last year.
According to Bloomberg, on September 23rd, the San Francisco-based enterprise utilized PayPalUSD (PYUSD) to settle an invoice with the major accounting firm Ernst & Young.
PayPal processed the unspecified amount via SAP’s digital currency hub, a system that allows users to conduct payments in cryptocurrencies and stablecoins without the need for intermediaries.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currencies, states that this payment highlights a new application for the stablecoin, which currently holds a market cap of nearly $700 million.
“The enterprise environment is very well-suited for it. It’s a very rational conversation to have with the CFO.”
Da Ponte explains that business-to-business transactions can carry significant costs and risks, especially those that involve cross-border dealings due to reliance on third-party intermediaries. He notes that utilizing stablecoins for settlements in commercial transactions is appealing because of their speed and accessibility.
Last month, PayPal also began enabling merchants to purchase, hold, and trade crypto assets directly from their business accounts. The firm states it is responding to the growing demand from business owners for the same cryptocurrency functionalities available to consumers.
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