According to theblock.co, citing a report from Bloomberg, PayPal has completed its first commercial transaction using its own USD-pegged stablecoin PYUSD.
The digital payments company settled an invoice with multinational accounting firm Ernst & Young as part of an effort to showcase the practical application of PYUSD in business-to-business (B2B) payments. The transaction involved depositing funds into Ernst & Young’s Coinbase account through an enterprise-level digital currency platform, but the exact amount paid was not disclosed.
PYUSD market capitalization
According to theblock.co, PayPal introduced PYUSD over a year ago, and by August, the stablecoin had a market capitalization of over $1 billion. However, as of now, the market capitalization has decreased to approximately $716 million. By comparison, the major US dollar-backed stablecoins Tether’s USDT and Circle’s USDC have market capitalizations in the tens of billions of dollars.
Despite this decline, PayPal continues to advance efforts aimed at increasing the adoption of digital currencies. The company recently announced that U.S. business customers will soon be able to buy, sell, hold, and transfer cryptocurrencies through PayPal. According to PayPal officials, stablecoins offer benefits for B2B payments, including support for 24/7 payments with near-instant fund transfers and settlements.
Other PayPal developments
In May 2024, PayPal announced that PayPal USD (PYUSD) is now available on the Solana blockchain, increasing the speed and reducing costs of stablecoin transactions. The availability of PYUSD on the Solana blockchain was intended to give users the option to choose from multiple blockchains, significantly increasing flexibility and control over their transactions.
According to PayPal representatives, PayPal USD was created to power commerce by providing fast, easy, and affordable payment methods for the next evolution of the digital economy. By making PYUSD available on the Solana blockchain, we are further advancing our goal of achieving a stable value digital currency designed for commerce and payments.
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