Nikolas Sargeant
PayPal, the global payments giant, has announced a significant expansion of its cryptocurrency services, now allowing US business account holders to buy, hold, and sell digital assets directly from their accounts. This move comes in response to growing demand from business clients seeking to leverage the same crypto functionalities available to individual customers.
Jose Fernandez da Ponte, Senior VP of blockchain, cryptocurrency, and digital currencies at PayPal, stated, "Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."
The new feature also enables businesses to transfer cryptocurrencies on-chain to third-party wallets, enhancing flexibility for users. However, it's worth noting that this functionality will not be available in New York State due to regulatory considerations.
PayPal's Crypto Journey
PayPal's foray into cryptocurrencies began in 2020 when it introduced crypto management features for consumers on both PayPal and its peer-to-peer payments app, Venmo. Since then, the company has steadily expanded its crypto offerings, aiming to increase cryptocurrency utilization in mainstream business operations.
In 2023, PayPal launched its native U.S. dollar-denominated stablecoin (PYUSD), issued by Paxos Trust Company. Initially an ERC-20 token on the Ethereum blockchain, PYUSD has recently become available on the Solana blockchain, offering users greater flexibility and control.
Expanding Partnerships and Ecosystem
Last month, PayPal collaborated with Crypto.com to enable US users to access crypto purchases. The company's stablecoin is also available on selected exchanges, including Bitstamp, Coinbase, and Kraken.
Interestingly, PYUSD's supply on the Solana blockchain has now surpassed that on Ethereum, indicating growing adoption and diversification of the stablecoin's ecosystem.
As PayPal continues to integrate cryptocurrency services into its platform, this latest move to include business accounts marks a significant step towards mainstream crypto adoption in the business sector. It reflects the company's commitment to meeting evolving financial needs and its vision for a more inclusive digital economy.
