In the hopes of demonstrating the ease of using its U.S. dollar-pegged stablecoin for commercial payments, PayPal completed its first business transaction using its proprietary token, PYUSD +0.20% , Bloomberg reported on Thursday.

The Silicon Valley-based digital payments firm said it paid an invoice to multinational accounting firm Ernst & Young, according to the report.

"Business-to-business payments is ripe for innovation, and digital currencies can provide incredible value in these use cases," said PayPal's Director of Market Development Steve Everett in a Coinbase blog post. The funds PayPal paid Ernst & Young were deposited into the accounting firm's Coinbase account, the post said.

When paying the invoice PayPal relied on an enterprise-level digital currency hub to complete the transaction, according to Bloomberg. The amount PayPal paid is unknown.

PayPal launched its USD stablecoin PYUSD more than a year ago. While in August PYUSD surpassed a market cap of $1 billion, the stablecoin's current market capitalization is about $716 million, according to The Block Price Page. The dominant USD-pegged stablecoins, Tether's USDT and Circle's USDC are considerably larger than PYUSD, each with market caps in the tens of billions of dollars.

The payments firm, however, has been busy of late, frequently announcing new partnerships and initiatives designed to grow its digital assets arm and spur increased utilization of its PYUSD stablecoin. Last week, PayPal announced plans to allow U.S. business customers to buy, sell, hold and transfer crypto.

"Requiring terms like ‘net-30’ for invoice payments can restrict cash flow and negatively impact business operations," Everett said. "With digital currencies like stablecoins, payments can be made 24/7, funds transferred near instantly and settled in near real time."

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