As first reported by Bloomberg, the leading financial technology solution firm utilized the PYUSD for an official business transaction for the first time.
Payment processing behemoth PayPal has completed its first business transaction using its dollar-pegged digital asset, PYUSD.
As initially reported by Bloomberg, the prominent financial technology solutions firm utilized the PYUSD for an official business transaction for the first time. On September 23, PayPal paid accounting firm Ernst & Young LLP an undisclosed sum of money using the Paxos-based stablecoin.
PayPal Broadens PYUSD Use Case
The transaction further expands the capabilities of stablecoins for mainstream use within the traditional financial system. Notably, PayPal completed the payment to Ernst & Young using the SAP SE platform.
German-based SAP SE, which is largely known for its cloud computing endeavors, processed the transaction to ensure swift delivery. Notably, the SAP SE protocol enables users to send and receive digital assets globally.
Stablecoins serve as a modern alternative to the slow, expensive traditional cross-border transactions. Their cheap and fast qualities have increased their adoption among payment institutions, including PayPal.
According to PayPal’s general manager of the blockchain, cryptocurrency, and digital currency group, Jose Fernandez da Ponte, the September 23 transaction showcases the wide use cases of stablecoins. He noted that its US dollar-pegged stablecoin was well-suited for transactional settlements of this kind.
Launched in August 2023 on the Paxos network, the PYUSD offers its users the benefits associated with stablecoins. In addition to a hedge against inflation—for regions with volatile local currencies—the digital currency also facilitates cross-border payments. At press time, the PYUSD is capped at $716 million.
Significantly, PYUSD gained further utility in the crypto market after crypto exchange OKX added the stablecoin for spot trading. With the integration, users can now trade cryptocurrencies against the stablecoin.
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