Payment giant PayPal has reportedly completed its first transaction using the dollar-pegged stablecoin it launched last year.
Bloomberg reported that on September 23, the San Francisco-based company used PayPalUSD (PYUSD) to pay an invoice to Big Four accounting firm Ernst & Young.
Paypal settled an undisclosed amount using SAP Digital Currency Hub, a platform that allows users to pay with cryptocurrencies and stablecoins without intermediaries.
José Fernández da Ponte, PayPal’s senior vice president of blockchain, cryptocurrencies and digital currencies, said the payments represent a new use case for stablecoins, which currently have a market capitalization of nearly $700 million. He says it shows that.
“The enterprise environment lends itself very well to that. The conversation with the CFO makes a lot of sense.”
Business-to-business transactions rely on third parties and can be expensive and risky, especially when they cross borders, Da Ponte said. He said using stablecoins to settle commercial transactions is attractive due to their speed and availability.
Last month, PayPal also launched the ability for merchants to buy, hold, and sell crypto assets directly from their business accounts. The company says it is responding to growing demand from business owners who want the same cryptocurrency functionality available to consumers.
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