PayPal, the American worldwide digital payments company, has recently made the first business payment using its own stablecoin known as PYUSD, demonstrating how digital currencies can improve business transactions.
According to a Bloomberg report, on September 23, PayPal made a payment to Ernst & Young LLP through PYUSD with the help of SAP SE’s digital currency hub, which enables the buying and selling of currencies at any time of the day. The amount of the invoice was not revealed.
Stablecoins are pegged to traditional assets such as fiat currencies, and their value is intended to be relatively stable, such as the US dollar. PYUSD is one of such stablecoins, with a market capitalization of nearly $700 million.
While stablecoins are still seen as a means to deliver consumer benefits, this payment shows that they can also be useful in the business setting.
Jose Fernandez da Ponte, PayPal’s SVP of blockchain and digital currencies, said that stablecoins can greatly enhance B2B transactions by making them faster and less dangerous than traditional cross-border transactions.
Some of the companies have already adopted the use of stablecoins such as Tether in making cross-border payments. For example, the payment platform BVNK can now enable organizations to transfer USD and transact using stablecoins worldwide.
PayPal has recently extended its offerings so that merchants can purchase, store, and sell cryptocurrencies through their PayPal business accounts. To show how stablecoin payments work, the company is collaborating with reputable firms.