PayPal Expands Cryptocurrency Services for Business Accounts
PayPal Holdings, Inc. (NASDAQ: PYPL) has announced new features that allow U.S. merchants to buy, hold, and sell cryptocurrency directly through their PayPal business accounts. However, this functionality will initially be unavailable to users in New York State. This move marks PayPal’s continued effort to enhance the utility of cryptocurrency, offering more functionality to millions of merchants across the United States.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated, “Since we launched the ability for consumers on PayPal and Venmo to buy, sell, and hold cryptocurrency, we’ve gained valuable insights into their usage patterns. Business owners have expressed a strong interest in having similar cryptocurrency capabilities, and we’re excited to fulfill that demand with this new offering, enabling them to interact with digital currencies seamlessly.”
In addition to these features, PayPal is now allowing U.S. merchants to transfer cryptocurrency externally to third-party eligible wallets. Business account holders can send and receive supported cryptocurrency tokens to and from external blockchain addresses.
PayPal has consistently taken significant steps to promote cryptocurrency usage. In 2020, the company introduced features that allowed its customers to buy, hold, and sell cryptocurrency directly within their PayPal and Venmo accounts. In 2023, they launched PayPal USD (PYUSD), a stablecoin pegged to the U.S. dollar. In April 2024, PYUSD became a funding option for the Xoom platform, allowing users to avoid transaction fees when funding eligible transfers to family and friends abroad. Most recently, PYUSD was integrated into the Solana blockchain, giving users the flexibility to choose from multiple blockchains.
About PayPal USD (PYUSD)
PayPal USD is issued by Paxos Trust Company, a fully chartered limited-purpose trust company. Paxos is licensed by the New York State Department of Financial Services to engage in Virtual Currency Business Activity. The reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, allowing users to buy or sell PayPal USD at a rate of $1.00 per token through PayPal and Venmo.
Issuance and custody of PayPal USD is managed by Paxos Trust Company, LLC. For more information, please refer to PayPal’s Cryptocurrency Terms and the Paxos Terms that also apply to PYUSD.
