Payment giant PayPal is looking to allow US merchants to buy, hold, and sell crypto assets directly from their business account accounts.
Background
- Jose Fernandez da Ponte, the company’s Senior Vice President of Blockchain, Crypto, and Digital Currencies highlighted that business owners have “increasingly” expressed a desire for the same crypto capabilities available to consumers
- Here it is worth recalling that in 2020, PayPal announced the availability of its customers to trade crypto directly from their PayPal and Venmo accounts
- The executive further underlined that since the doors for PayPal and Venmo consumers to buy, sell, and hold crypto assets in their wallets were opened, the firm has "learned a lot" about how they want to use their holdings
- The company is a holder of the trust license granted by the state's Department of Financial Services
Why should you pay attention?
- US merchants will now be able to externally transfer crypto on-chain to eligible third-party wallets
- Parallelly, PayPal business account holders can also send and receive supported crypto tokens to and from external blockchain addresses
- This could prove to be revolutionary over the long-term
- At launch, the service will not be available to New York businesses
- The payment giant has not chalked out a timeframe outlining when that would change
Who said what?
- Fernandez da Ponte asserted,
“We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."
Zooming out
- PayPal has been making significant strides within the crypto arena
- A year back, it set afloat its native stablecoin, PYUSD, on Ethereum
- Earlier this year, it launched the asset on the Solana blockchain
- This was done with the intention to migrate from the “awareness to the utility phase” in the long-term process of adoption
