PayPal has taken a major step in integrating its proprietary PayPal USD (PYUSD) stablecoin into corporate transactions, completing its first business payment to Ernst & Young, one of the Big Four accounting firms. This marks a significant milestone in PayPal’s push to promote PYUSD for seamless business-to-business payments.
A Corporate First for PYUSD
The payment was processed through SAP’s digital currency hub, though the invoice amount was not disclosed. According to a report by Bloomberg on Oct. 3, the transaction demonstrates how stablecoins like PYUSD can facilitate instant corporate payments. PayPal, which launched PYUSD in August 2023, developed the stablecoin to be backed by U.S. dollar deposits and short-term U.S. Treasurys.
Currently, PYUSD has a market capitalization of $699 million, making it the eighth-largest stablecoin, according to DefiLlama. Its stability, pegged to the U.S. dollar, offers businesses a reliable and low-volatility option for transactions—a key feature differentiating stablecoins from other cryptocurrencies.
PayPal’s Growing Blockchain Presence
PayPal has been ramping up its digital asset services in recent months. In September, the company announced that U.S. business users (excluding New York) could now buy, sell, and trade cryptocurrencies directly from their PayPal accounts. This move underscores PayPal’s commitment to integrating blockchain and cryptocurrency into everyday business operations.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency, emphasized the advantages of stablecoins for corporate environments, saying, “The enterprise environment is very well-suited for it. It’s a very rational conversation to have with the CFO.”
The Expanding Stablecoin Market
The stablecoin market has been drawing increased attention, especially as regulatory frameworks solidify across various regions. PayPal’s entrance into the space aligns with the broader trend of fintech companies exploring stablecoin solutions. Robinhood and Revolut are reportedly considering launching their own stablecoins, especially as the European Union’s Markets in Crypto-Assets (MiCA) regulation introduces new compliance standards.
While PayPal’s PYUSD is gaining traction, Tether’s USDT continues to dominate the stablecoin market with a staggering $119.7 billion market capitalization. In comparison, USD Coin (USDC) ranks second with a $35.3 billion market cap.
