PayPal’s digital asset plan took a big step forward when it used its own stablecoin, PayPal USD (PYUSD), for the first time in a business transaction. The payment to the well-known accounting firm Ernst & Young was made possible by SAP’s digital currency hub, but the exact billing amount was kept secret.
The purpose of this exchange is to show how stablecoins can help businesses make fast payments. PYUSD, which started in August 2023, is backed by short-term US Treasury assets and savings in US dollars. It is one of the most valuable stablecoins on the market right now, with a market value of about $699 million.
The value of stablecoins like PYUSD stays stable because they are linked to safe assets like the US dollar. This trait makes cryptocurrencies more useful for daily deals by lowering the price fluctuation that comes with them. Jose Fernandez da Ponte, who is senior vice president of blockchain and digital currency at PayPal, said that stablecoins are great for business use, which is why they are popular with business leaders.
In the past few months, PayPal has added more digital asset services. Now, company users in the US (except New York) can buy, sell, and trade coins right from their PayPal accounts. A lot of financial businesses are interested in stablecoins because they are becoming more popular. Notably, Robinhood and Revolution are thinking about releasing their own stablecoins in response to new rules in Europe and other places. The stablecoin market is changing, and Tether’s USDT has a market cap of $119.7 billion, making it the most valuable coin right now. As regulations become clearer, more players are likely to join the market. This will change how digital assets are traded and help them become more widely used. The fact that PYUSD can be used to pay for things in business is a good sign for PayPal’s ongoing attempts to improve its digital currency features.
