PayPal Expands Cryptocurrency Services, Allowing Merchants to Buy, Sell, and Hold Crypto

PayPal Expands Cryptocurrency Services, Allowing Merchants to Buy, Sell, and Hold CryptoPayPal (PYPL.US) has announced an expansion of its cryptocurrency services, allowing merchants to buy, hold, and sell cryptocurrencies through their business accounts for the first time

PayPal Expands Cryptocurrency Services, Allowing Merchants to Buy, Sell, and Hold Crypto

PayPal (PYPL.US) has announced an expansion of its cryptocurrency services, allowing merchants to buy, hold, and sell cryptocurrencies through their business accounts for the first time. This move aligns PayPals merchant offerings with the capabilities already available to consumers, further solidifying PayPals position in the digital currency space. Since 2020, PayPal has supported consumer trading of cryptocurrencies through PayPal and Venmo accounts, and has launched the dollar-pegged stablecoin PayPalUSD, demonstrating its deep exploration and commitment to the digital currency realm.

Jose Fernandez da Ponte, senior vice president of blockchain, crypto and digital currencies at PayPal, noted that the company has learned through its services that users are demanding ways to use cryptocurrencies, and that business owners want the same capabilities for their customers. While merchants have been able to accept cryptocurrency payments through services like BitPay and CoinbaseCommerce, PayPals entry is anticipated to further propel the adoption of cryptocurrencies in the commercial sector.

It is noteworthy that this new merchant feature by PayPal will not be available in New York State at launch. Additionally, businesses will be able to transfer digital currencies to qualified third-party wallets and send and receive supported tokens to and from external blockchain addresses. With these new features, PayPal not only provides merchants with more flexible cryptocurrency management options but also potentially facilitates the adoption of cryptocurrencies in a broader range of commercial transactions.

This marks another significant step for PayPal in supporting digital currency innovation, while also positioning the company favorably in the global fintech competition.

It is worthwhile to mention that two former executives from Coinbase Global Inc. (COIN.US), Vishal Gupta and Patrick McCreary, have announced the launch of a new innovative cryptocurrency trading platform - TrueX. This new platform will utilize PayPals stablecoin PYUSD as the primary trading currency. Gupta previously served as head of exchange at Coinbase and oversaw the issuance of USDC stablecoin at Circle Internet Financial Ltd. McCreary was a senior engineer at Coinbase and both individuals have experience at Goldman Sachs.

PayPal's PYUSD stablecoin is designed to maintain a 1:1 peg with the US dollar, serving as a bridge currency within and outside the crypto ecosystem while offering a hedge against price volatility of digital tokens. The TrueX exchange will initially be opened to US-based and select international institutional investors.