PayPal opens crypto buying, selling and holding for US business accounts
PayPal has announced that its US business account holders can now buy, sell and hold cryptocurrencies directly through their PayPal accounts. With this feature, the platform aims to explore the practical applications of cryptocurrencies for its users. Currently, the crypto sector is under regulatory scrutiny in several regions around the world as governments raise concerns about the potential for financial instability and misuse of these volatile assets. Despite these fears, millions of individuals and businesses continue to engage with the more than 2.4 million cryptocurrencies in circulation, according to CoinMarketCap.
In recent years, PayPal has seen a rise in demand for crypto services from its user base. This is it confirmed by Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency and Digital Currencies at PayPal.
“Business owners have increasingly expressed a desire for the same cryptocurrency options available to consumers. We are excited to meet that demand by delivering this new offering, allowing them to effortlessly engage with digital currencies,” da Ponte said while commenting on the development.
With this service enabled, US traders using the platform will be allowed to facilitate cross-chain crypto transfers. The traders will also have the option to withdraw their crypto savings.
“Today’s announcement is PayPal’s latest step to expand the utility of cryptocurrency by making enhanced functionality available to millions of merchants in the US,” the company added.
This is a game-changer for businesses using PayPal.
Integrating cryptocurrency directly into business accounts opens up new possibilities for expanding payment options and reaching a more tech-savvy customer base.
As adoption grows, it will be interesting to see how…
— Faz Hoq (@Faz_Hoq) September 25, 2024
However, this is not the first time that PayPal has taken a crypto-friendly step. In 2020, the company had announced that it would let individual retail customers buy, sell and hold crypto assets directly from their PayPal and Venmo accounts. According to da Ponte, enabling this service has helped the company gain more crypto-related insights from its user base.
Building on these insights, PayPal has regularly updated its portfolio of services with crypto-related features.
In 2023, PayPal announced the launch of its own stablecoin, PayPal USD (PYUSD). Pegged to the US dollar, this stablecoin is issued by Paxos Trust Company. In August this year, the PYUSD reached the market cap of $1 billion (approximately Rs. 8,367 crore).
PayPal claims that its services are available in more than 200 countries and regions and support 25 fiat currencies. For now, PayPal has not announced any plans to expand this crypto feature outside the US.
