PayPal business account holders in the US can now “buy, hold, and sell crypto directly from their business accounts.”
Confirming the launch of this new feature to make it easier for US-based merchants using PayPal, the payments giant released an official statement on Sept 25. However, in the first phase, this will only be available to merchants in New York State.
In its statement, PayPal also said that it has enabled “U.S. merchants to externally transfer cryptocurrency on-chain to third-party eligible wallets.” This means that business transactions in crypto do not necessarily have to be between two PayPal account holders; merchants can also send and receive supported crypto from “external blockchain addresses.”
Commenting on what inspired them to launch this new feature, Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, said: “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.”
PayPal’s Crypto Journey
PayPal has been at the forefront of providing users the ability to use their crypto assets through its network. In August 2023, PayPal announced the launch of its dollar-pegged stablecoin, PayPal USD. This was a significant development, as PayPal became the first US-based fintech company to launch a stablecoin.
In 2020, PayPal introduced a feature enabling retail users to buy, hold, and sell crypto and use it at merchant outlets. That same year, PayPal was granted a unique conditional BitLicense by the New York State Department of Financial Services (NYDFS). PayPal has continued developing features for its customers, and the latest addition aligns with its vision of promoting mainstream cryptocurrency adoption.
However, PayPal’s crypto journey has also been complicated by SEC investigations. In November 2023, after the company became the first fintech firm in the US to launch its stablecoin, the SEC issued a subpoena seeking documentation from PayPal regarding the newly launched stablecoin.
Although PayPal has not faced any charges, its stablecoin has not performed as well compared to Tether and other popular stablecoins.
The SEC has been strict with stablecoins after Terra USD crash causing US investors lose billions. Last week, a US court approved the bankruptcy filling of Terraform Labs, the company that was behind the Terra USD. The SEC had sued the company for misleading users.
