Payments giant PayPal has reportedly completed its first business transaction using the dollar-pegged stablecoin it launched last year.
Bloomberg reports that on September 23rd, the San Francisco-based company used PayPalUSD (PYUSD) to pay an invoice to the Big Four accounting firm Ernst & Young.
Paypal settled the undisclosed amount using SAP digital currency hub, a platform that enables users to make and receive payments in cryptocurrencies and stablecoins without intermediaries.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currencies, says the payment demonstrates a new use case for the stablecoin, which now has a market capitalization of nearly $700 million.
“The enterprise environment is very well-suited for it. It’s a very rational conversation to have with the CFO.”
According to da Ponte, business-to-business transactions can be expensive and risky particularly those that cross borders because they rely on third parties. He says using stablecoins for settlement in commercial dealings is attractive due to their speed and availability.
Last month, PayPal also began allowing merchants to buy, hold and sell crypto assets directly from their business accounts. The company says it is addressing the increasing demand from business owners to have the same cryptocurrency capabilities available to consumers.
