PayPal (PYPL) has taken an important step in digital payments by completing its first business transaction using its own stablecoin, PayPal USD (PYUSD). This move reflects the growing role of stablecoins in the corporate world.
It is worth noting that PYPL’s first stablecoin payment was made on September 23 to settle an invoice with accounting giant Ernst & Young. The transaction leveraged SAP SE’s (DE:SAP) Digital Currency Hub, a platform designed to facilitate instant digital payments for businesses. However, the transaction amount was not disclosed.
PYUSD continues to gain momentum
Founded in August 2023, PYUSD quickly gained attention. Backed by US dollar deposits and short-term US government bonds, PYUSD provides stability and security for trading. Additionally, its market capitalization rose to nearly $700 million, securing its position as the 8th largest stablecoin.
It is worth noting that PYUSD was initially issued on the Ethereum (ETH-USD) blockchain, but was extended to the Solana (SOL-USD) network in late May. This led to an increase in user activity for PYUSD, with monthly active wallet addresses jumping from 9,400 in May to more than 25,000 in July.
Additionally, PayPal is expanding adoption of its stablecoin PYUSD through strategic partnerships. This includes a collaboration with Anchorage Digital that rewards you for holding PYUSD. Additionally, PYPL’s cooperation with Paxos, the blockchain infrastructure company responsible for managing and issuing PYUSD, has proven to be fruitful.
Is PYPL a buy or a sell?
Turning to Wall Street, PYPL stock has a “Moderate Buy” consensus rating, based on 17 buys and 15 holds assigned over the past three months. PayPal’s average price target is $78.57, implying a 1.63% upside potential. The company’s stock price has increased 25.89% since the beginning of the year.
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