PayPal completes first payment using PYUSD stablecoin

Launched in August 2023, PYUSD has swiftly reached a market capitalisation of $699 million, showcasing strong market adoption.

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PayPal has recently completed its first business payment using its USD-pegged stablecoin, PYUSD, to Ernst & Young via SAP’s digital currency hub. The transaction, made public in early October, highlights how corporations can utilise stablecoins for instant and seamless payments. PayPal launched PYUSD in August 2023, and it has rapidly gained traction, with a market capitalisation of $699 million.

Stablecoins pegged to assets such as the US dollar, provide businesses with a more stable payment option than the often volatile cryptocurrency market. PayPal’s blockchain executive, Jose Fernandez da Ponte, emphasised the appeal of stablecoins in corporate finance, noting the practicality of this digital asset for Chief Financial Officers. Meanwhile, fintech companies like Robinhood and Revolut are also exploring their stablecoins as regulations worldwide, particularly in Europe, become more apparent.

Tether’s USDT has long dominated the stablecoin market, which has a market cap nearing $120 billion, far ahead of competitors like USD Coin. However, with PayPal and other firms entering the space, competition in the stablecoin sector is expected to intensify.