Payments giant PayPal has completed its first transaction with the dollar-pegged digital asset PYUSD.
As first reported by Bloomberg, the leading financial technology solutions company has used PYUSD for official commercial transactions for the first time. On September 23, PayPal paid an undisclosed amount to accounting firm Ernst & Young LLP using a Paxos-based stablecoin.
PayPal expands PYUSD utility
This transaction further strengthens the stablecoin’s ability to resist abuse in the traditional financial system. Specifically, PayPal used the SAP SE platform to complete payments to Ernst & Young.
Germany-based SAP SE, widely known as a cloud computing venture, handled the transaction and ensured quick delivery. In particular, the SAP SE protocol allows users to send and receive digital assets globally.
Stablecoins are a modern alternative to traditional cross-border transactions, which are slow and costly. Its cheap and quick nature has led to its increasing adoption by payment institutions, including PayPal.
José Fernández da Ponte, general manager of PayPal’s Blockchain, Cryptocurrency, and Digital Currency Group, said the September 23 transaction shows a huge amount of stablecoin usage. He pointed out that stablecoins pegged to the US dollar are suitable for this type of transaction settlement.
Launched on the Paxos network in August 2023, PYUSD offers users the benefits associated with stablecoins. Digital currencies not only protect against inflation for regions with unstable local currencies, but also help with cross-border payments. As of this writing, PYUSD has a cap of $716 million.
Notably, PYUSD gained further utility in the crypto market after cryptocurrency exchange OKX added a stablecoin for spot trading. This integration allows users to trade cryptocurrencies with stablecoins.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
