How PayPal settled US$1bn across continents in hours with blockchain

Best in Class Treasury Solution in
The Americas

Overall Winner

PayPal Holdings, Inc.

Photo of Galina Kersten, Deutsche Bank, Bianca Shi, PayPal Holdings, Inc. and Stefan Danci, J.P. Morgan.

Can Balcioglu

Vice President, Group Treasurer

Kammy Tsang

Senior Director, Head of Global Cash Management

United States

PayPal Holdings, Inc. is a leading San Jose, California-based fintech with a market capitalisation of approximately US$45bn. The company operates a global digital payments network that includes brands such as PayPal, Venmo, Braintree and Honey.

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The challenge

PayPal operates one of the payments industry’s more demanding treasury environments – a global network spanning 200-plus markets and more than 100 currencies, with the scale, velocity and regulatory breadth that accompany it. Ahead of 2025, that environment was supported largely by traditional processes and manual workflows, which, while dependable, were increasingly stretched by the pace of a rapidly expanding global business.

Intercompany funding relied primarily on traditional banking rails, which could occasionally introduce settlement delays, limit real-time visibility and create variable timing across time zones, and cross-border movements often called for significant manual co-ordination. Liquidity management had also yet to tap the full breadth of diversified short-term funding markets – all against a backdrop of rising volumes, evolving regulatory expectations and growing demand from the business.

At the same time, treasury professionals devoted considerable effort to high frequency manual tasks – email triage, policy research, counterparty filing reviews and document validation – with critical data distributed across multiple systems. The opportunity was clear: modernise the platform to match the ambition and scale of the business it supports.

The solution

PayPal implemented its 2025 treasury solution through a co-ordinated, multi-phase programme combining capital markets development, digital asset enablement, automation, AI integration and infrastructure modernisation. Operational efficiency and standardisation formed a central pillar of the programme. Dynamic Target Balancing eliminated approximately 1,200 hours of manual effort annually, while automation of cash positioning sharpened daily execution. Global cash visibility was consolidated through centralised dashboards, while an eBAM SaaS migration and post-trade limit checks together deepened data connectivity and strengthened the control environment.

Artificial intelligence (AI) formed a further pillar of the programme. The team built a suite of AI agents to boost individual productivity, strengthen governance and risk management, and drive operational improvements – including migrating key processes such as reconciliations off spreadsheets and onto AI-enabled tooling. A core capital markets initiative was the establishment of a US$5bn commercial paper (CP) programme. This expanded PayPal’s access to diversified short-term funding markets, strengthened funding flexibility and supported broader liquidity planning.

Among the programme’s most distinctive initiatives was an early-stage pilot of blockchain-based intercompany settlement, delivered by a small, dedicated US-based team and initiated entirely within the US. The pilot moved more than US$1bn in PayPal USD (PYUSD stablecoin) transfers. The PYUSD intercompany settlement framework was built by linking US and international subsidiaries to an on-chain mechanism through dedicated wallet structures, defined regulatory treatments, integrated reconciliation tools and structured approval controls – enabling settlements in hours instead of days.

Best practice and innovation

The judges recognised PayPal for pairing a pioneering blockchain-based settlement pilot with disciplined use of AI and automation – showcasing how an innovative team can translate strategic vision into ambitious, well-executed outcomes. It was also picked for a well-structured legacy overhaul that embraced new technologies to further improve and automate treasury processing and accuracy.

PayPal’s treasury programme reflects disciplined execution through strengthened governance, standardised global processes and sequenced advances across liquidity, digital assets, automation and AI. With total PYUSD market capitalisation exceeding US$3bn, driven by adoption and expansion across multiple blockchain networks, PayPal’s small US treasury team designed the wallet infrastructure and worked cross-functionally across treasury, legal and accounting to determine regulatory and accounting treatments, approval controls and reconciliation tooling that support enterprise-grade digital asset operations. This blockchain-based mechanism has already moved intercompany funds across three continents in hours, demonstrating how digital assets can accelerate settlement, improve transparency and reduce reliance on traditional rails.

Key benefits

Cost savings.
Process efficiencies.
Return on investment (ROI).
Risk mitigation.
Exceptional implementation (budget/time).
Future-proof solution.
Improved key performance indicators (KPIs) or metrics.
Improved visibility.
Increased automation.
Increased system connectivity.
Manual intervention reduced.
Reduction in errors.

A central objective was expanding access to short-term funding markets, achieved through the establishment of the US$5bn CP programme. This strengthened funding diversification and enabled execution of the company’s first corporate dividend through improved liquidity planning and visibility. A second goal was accelerating intercompany settlement and creating a dual rail alongside traditional banking channels. The PYUSD settlement framework met this need by enabling intercompany funds to move across three continents in hours rather than days, supported by dedicated wallet infrastructure, on-chain transparency and automated reconciliation tooling.

Finally, the adoption of AI assistants delivered meaningful productivity gains – reducing document review, meeting summarisation, email triage and counterparty checks from hours to minutes. Collectively, these outcomes demonstrate direct alignment with project goals and deliver measurable, enterprise-wide impact. Rather than a single transformation, this represents the power of compounding improvement: consistent progress in liquidity management, operational efficiency, control discipline and technology enablement that together stand as a best in class benchmark for The Americas region.

PayPal executed a multi-dimensional treasury transformation, modernising a highly complex treasury environment through a series of targeted, connected improvements delivered within a single year. From establishing a US$5bn commercial paper programme to pioneering blockchain-based intercompany settlement through PYUSD, the team delivered meaningful advances across liquidity, automation, AI and operational efficiency. This well-deserved recognition reflects a team that is actively shaping the future of treasury and payments innovation, and Deutsche Bank is proud to have collaborated with PayPal in bringing several of these initiatives to life.

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Dean Byrne

Managing Director, Global Corporate Banking, J.P. Morgan Payments

Stephen Felix

Managing Director, J.P. Morgan Payments

PayPal’s treasury team successfully transformed its fragmented systems by consolidating data, automating workflows, and regaining strategic control. Achieving full global cash visibility, the team migrated FX derivatives, unified bank account management, and pioneered the use of stablecoin for large-scale intercompany transfers. By eliminating manual processes and reducing operational costs, PayPal has empowered its treasury to drive true innovation and self-sufficiency. We are thrilled to work alongside PayPal on these cutting-edge solutions, and, on behalf of the entire J.P. Morgan team, we wholeheartedly congratulate them on this incredible win.

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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards

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