KEY POINTS
- PayPal used its stablecoin to settle an invoice with Ernst & Young LLP: Bloomberg
- EY revealed in a July report that $PYUSD is among the most used stablecoins for payments
- Also on Thursday, crypto exchange OKX listed the $PYUSD for spot trading
Payments titan PayPal has reportedly completed its first business payment using its stablecoin, PYUSD, demonstrating the ease of using the digital currency for commercial-related transactions.
The development comes as the stablecoin market has now reached a whopping $173.8 million as of early Friday, according to data from CoinGecko.
Paypal Demonstrates $PYUSD's Business Utility
The digital payments giant used its stablecoin to settle an invoice with Ernst & Young LLP on Sept. 23, Bloomberg reported Thursday, marking a significant milestone in the stablecoin segment's move toward broader business adoption. The exact amount of the payment was not disclosed.
According to the report, software company SAP's Digital Currency Hub facilitated the transaction. SAP's platform allows businesses to send and receive instant digital payments.
A July report by EY revealed that "the most frequently used stablecoins for payments include PYUSD (47%) and USDC (38%)." It also revealed that 66% of investors have now moved beyond investing in core cryptocurrencies such as Bitcoin, and have begun holding altcoins and stablecoins, further proving the future utility and popularity of the stablecoin sector.
Why is the Transaction Important?
The PYUSD's use in a business-related transaction is one of the early reported transactions in the stablecoin segment, since stablecoins are known to be usually associated with retail users.
With the stablecoin's utility for business-to-business transactions, it is expected that more companies may find interest in trying stablecoin settlements as well, which could then drive broader adoption in the corporate space.
$PYUSD Continues to Expand Reach
Also on Thursday, cryptocurrency exchange OKX, one of the biggest digital asset exchanges in the world, announced that it has listed PYUSD on its spot trading market.
The entry of PYUSD within OKX's list of crypto assets for spot trading marks yet another milestone in the expanding reach of stablecoins within the broader crypto industry, as more exchanges acknowledged the digital coins' utility.
PayPal, a leading global payments platform, released the PYUSD, developed by Paxos Trust, in mid-2023. Designed for digital payments and other Web3 applications, the stablecoin's release was deemed as part of the company's efforts to cement its presence in the fast-evolving digital payments sector and the booming stablecoin segment.
PayPal Allows Business Accounts to Use Crypto
The report comes more than a week after PayPal allowed millions of U.S. merchants to buy, hold and sell cryptocurrencies directly using their business accounts.
At the time, a company executive said PayPal's move came after it learned that businesses have expressed strong interest in using crypto, not just retail consumers.
