PayPal, Ernst & Young settle first corporate payment via PYUSD stablecoin
According to an Oct. 3 Bloomberg report, the payment was made to the Big Four accounting firm Ernst & Young through SAP’s digital currency hub
Fintech company PayPal has completed its first business payment using PayPal USD (PYUSD), its proprietary USD-pegged stablecoin.
According to an Oct. 3 Bloomberg report, the payment was made to the Big Four accounting firm Ernst & Young through SAP’s digital currency hub. The companies did not disclose the invoice amount. PayPal Holdings is an audit client of Ernst & Young.
The transaction was a way to demonstrate how stablecoins could be used by corporations to make instant payments.
PayPal launched PYUSD in August 2023 backed by US dollar deposits and short-term US Treasurys. According to data from DefiLlama, the stablecoin has a market capitalization of $699 million at the time of writing, placing it at eighth position among the largest stablecoins.
A stablecoin is a cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, like a fiat currency such as the US dollar. This stability makes it more suitable for everyday transactions and reduces the price volatility seen in other cryptocurrencies.
