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PayPal has announced that US businesses can now buy, hold, and sell cryptocurrency directly through their PayPal business accounts.
This move marks a significant step in the company’s strategy to expand cryptocurrency’s role in everyday business transactions across the United States.
By allowing merchants to integrate digital assets into their operations, PayPal is responding to increasing demand from businesses eager to access the same crypto services already available to consumers.
However, the service will not be available to businesses in New York at launch.
Since 2020, PayPal has enabled its users, including consumers on Venmo, to buy, sell, and hold popular cryptocurrencies like Bitcoin and Ethereum.
Now, the company is extending this functionality to its business account holders, offering new opportunities for merchants to leverage digital assets.
This development allows businesses to handle cryptocurrencies similarly to traditional currencies, with PayPal acting as a seamless bridge between conventional finance and the expanding world of blockchain technology.
With this new feature, PayPal business accounts can now transfer cryptocurrencies to external wallets, offering increased flexibility for merchants.
This enables businesses to send and receive digital assets through blockchain networks, aligning with the growing adoption of decentralized finance (DeFi) technologies.
As more businesses embrace digital currencies, PayPal’s enhanced crypto services position it as a crucial player in the evolving landscape of digital finance.
For businesses unfamiliar with the intricacies of cryptocurrency, PayPal’s integration simplifies the process.
Merchants can now treat digital currencies like Bitcoin, Ethereum, and others similarly to traditional money, providing them with an easy entry point into the crypto space.
With PayPal handling the transaction process, businesses can offer customers the option to use digital currencies, broadening their payment options and potentially attracting more tech-savvy customers.
PayPal’s stablecoin success
This latest development follows PayPal’s successful launch of its stablecoin, PayPal USD (PYUSD), in August 2023.
PayPal became the first major financial company to introduce a stablecoin, which debuted on the Ethereum blockchain.
PYUSD is backed by US dollar deposits and short-term US Treasuries, providing businesses with a stable, reliable digital currency option.
The introduction of PayPal USD further solidified the company’s commitment to integrating cryptocurrencies into mainstream financial services.
PYUSD quickly gained traction, particularly after PayPal expanded its use to the Solana blockchain.
This move led to a significant increase in weekly transaction volumes, jumping from $150 million to over $500 million by May 2024.
Currently, the total supply of PayPal USD across Ethereum and Solana exceeds $534 million, with 74% of the supply circulating on Ethereum and 25% on Solana
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