PayPal conducted the first B2B payment using the PYUSD stablecoin

The company emphasized the suitability of stablecoins for corporate use

04.10.2024 - 12:15

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2 min

Last updated on Nov 16, 2024

What’s new? PayPal, a payment company, has successfully completed its first B2B transaction using the PayPal USD (PYUSD) stablecoin, issued by regulated fintech company Paxos under its brand. The payment recipient was the Big Four accounting firm Ernst & Young, which acts as PayPal’s auditor, among others.

Material by Bloomberg

What else is known? Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currencies, emphasized the suitability of stablecoins for corporate use.

Launched in August 2023, PYUSD is backed by dollar deposits and short-term US Treasuries. To date, the asset has reached a market capitalization of $694 million.

Testing corporate payments in stablecoins is part of PayPal’s strategy to expand its digital asset business. Thus, in late September, the company allowed business accounts to make transactions with cryptocurrency throughout the United States, except for New York.

Regulated crypto custodian BitGo will launch USDS stablecoin

The asset is collateralized by short-term treasury bills, overnight repos, and cash

The stablecoin market, dominated by Tether’s USDT and Circle’s USDC with capitalizations of $119 billion and $35 billion, is attracting increasing attention from financial institutions. A host of them, including online bank Revolut, are considering launching their own stablecoins in various jurisdictions.

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