2024-10-04
Oct 3, 2024 - PayPal has successfully completed its
first business transaction using its stablecoin, PYUSD.
PYUSD stands for PayPal USD, which is a
stablecoin launched by PayPal.
It is issued by Paxos Trust Company,
the same firm behind the Pax Dollar (USDP) stablecoin. PYUSD is designed to
maintain a 1:1 peg with the U.S. dollar, meaning each PYUSD token is backed by
reserves equivalent to one U.S. dollar. It can be redeemed 1:1 for U.S.
dollars, or users can convert it into other cryptocurrencies.
The transaction involved paying Ernst
& Young through SAP’s digital currency platform.
This transaction highlights the
potential of stablecoins to streamline cross-border business payments by
reducing delays caused by third-party intermediaries.
PYUSD is available on the Ethereum
blockchain and on the Solana blockchain.
PYUSD is similar to other popular
stablecoins such as USDC (USD Coin) and USDT (Tether). However, its deep
integration with PayPal's existing payment infrastructure makes it a
potentially more accessible option for people who already use PayPal for day-to-day
transactions.
PYUSD currently has $694,834,758 market
cap. Given PayPal’s large user base (over 400 million active accounts
worldwide), PYUSD has significant potential for adoption, both for traditional
financial transactions and in the broader crypto space.
