Summary:
PayPal enables U.S. merchants to buy, hold, and sell cryptocurrency from their business accounts.
External transfers of cryptocurrency to third-party wallets are now possible.
The new features aim to enhance cryptocurrency utility for millions of merchants.
PayPal USD (PYUSD), a stablecoin, was launched in 2023 and is now available on the Solana blockchain.
PayPal Empowers Business Accounts with Cryptocurrency Features
PayPal has announced a game-changing feature for U.S. merchants, enabling them to buy, hold, and sell cryptocurrency directly from their PayPal business accounts. This new functionality, however, is not yet available in New York State.
Enhanced Cryptocurrency Utility
This move is part of PayPal's ongoing efforts to increase cryptocurrency's utility for millions of merchants across the U.S. According to Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, business owners have shown a growing interest in accessing the same cryptocurrency features that consumers currently enjoy. "We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly," he stated.
External Transfers Now Possible
In addition to buying and selling, PayPal is now allowing U.S. merchants to externally transfer cryptocurrency to third-party eligible wallets. This means that business account holders can send and receive supported cryptocurrency tokens to and from external blockchain addresses.
A Track Record of Innovation
PayPal has been progressively enhancing its cryptocurrency services since 2020, when it first allowed consumers to buy, hold, and sell cryptocurrencies through their PayPal and Venmo accounts. In 2023, the company launched PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin, and has recently made it available on the Solana blockchain, adding flexibility and control for users.
About PayPal USD
PayPal USD is issued by Paxos Trust Company, fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, and can be traded at a rate of $1.00 per PYUSD. Issuance and custody are managed by Paxos Trust Company, LLC, ensuring a secure and regulated environment for cryptocurrency transactions.
For more information, check out PayPal's Cryptocurrency Terms and Paxos' associated terms.
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