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PayPal has announced that it is extending its cryptocurrency services to U.S. business accounts. This move allows merchants to buy, hold, and sell cryptocurrency directly through their PayPal business accounts, marking a significant expansion of the company's digital currency offerings.
The new functionality enables business account holders to engage with cryptocurrencies in the same way that individual users have been able to since 2020. However, this service will not be available to businesses in New York State at launch.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, explained the rationale behind this expansion: "Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency. Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers."
In addition to buying, holding, and selling cryptocurrencies, PayPal is also introducing the ability for U.S. merchants to transfer supported cryptocurrency tokens to and from external blockchain addresses. This feature allows for greater flexibility in managing digital assets outside the PayPal ecosystem.
This latest development is part of PayPal's ongoing efforts to increase cryptocurrency adoption and utility. The company's journey in the crypto space began in 2020 when it first allowed customers to buy, hold, and sell cryptocurrencies through their PayPal and Venmo accounts. In 2023, PayPal launched its own U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). The company has continued to expand PYUSD's functionality, including its use as a fee-free funding instrument for eligible transfers on PayPal's Xoom platform and its availability on the Solana blockchain.
PayPal USD is issued by Paxos Trust Company, a regulated entity in the cryptocurrency space. The stablecoin is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, maintaining a 1:1 ratio with the U.S. dollar.
This expansion of cryptocurrency services to business accounts represents PayPal's latest step in integrating digital currencies into mainstream financial services, potentially opening up new opportunities for merchants in the evolving digital economy.
Last week it was announced that ex-Coinbase and Circle executives launched a stablecoin native exchange TrueX in partnership with Paxos to use PayPal USD (PYUSD) as its default settlement currency.
