PayPal expands cryptocurrency capabilities for U.S. business clients
PayPal expands cryptocurrency capabilities for U.S. business clients
PayPal Holdings, Inc. has announced a significant expansion of its cryptocurrency services, enabling its U.S. business clients to buy, hold, and sell cryptocurrency directly from their PayPal business accounts.
This new feature is the latest step in PayPal's efforts to broaden the adoption and use of cryptocurrencies on its platform. However, at launch, this service will not be available to business clients based in New York State.
This development follows PayPal’s previous cryptocurrency initiatives, which first allowed retail consumers to buy, sell, and hold cryptocurrency through PayPal and Venmo. Now, business account holders can also engage with digital currencies, reflecting the growing demand among U.S. business clients for cryptocurrency assets.
"Since we launched the ability for PayPal and Venmo consumers to buy, sell, and store cryptocurrency in their wallets, we’ve learned a lot about how they want to use their cryptocurrency," said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal. "Business owners are increasingly expressing a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by offering this new feature, enabling them to easily engage with digital currencies."
In addition to allowing business clients to buy, hold, and sell cryptocurrency, PayPal will also enable them to perform external cryptocurrency transfers on-chain to eligible third-party wallets. This feature means that PayPal business account holders can now send and receive supported cryptocurrency tokens to and from external blockchain addresses, extending their capabilities with digital assets beyond the PayPal platform.
PayPal has consistently increased its efforts to integrate cryptocurrency into its ecosystem. In 2020, the company introduced the ability for customers to buy, hold, and sell cryptocurrency through their PayPal and Venmo accounts. The following year, PayPal launched a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), to expand its digital currency offerings. Most recently, PayPal announced the availability of PYUSD on the Solana blockchain, providing users with greater flexibility by allowing them to conduct transactions across multiple blockchains.
PayPal USD is issued by Paxos Trust Company, a fully chartered limited-purpose trust company. It is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. Users can buy or sell PayPal USD through PayPal and Venmo at a fixed rate of $1.00 per PYUSD. Issuance and custody of PayPal USD are managed by Paxos Trust Company, which is licensed to conduct virtual currency business by the New York State Department of Financial Services.
With this latest offering, PayPal continues to position itself as a leader in digital payments and cryptocurrency services, helping both retail and business clients navigate the evolving landscape of digital currencies.
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