PayPal is set to allow U.S. merchants to purchase, hold, and sell cryptocurrency directly through their PayPal business accounts.
PayPal announced this move as part of its strategy to increase cryptocurrency’s role in everyday transactions for millions of businesses in the U.S. At launch, this service will not be available for businesses in New York.
Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold crypto like Bitcoin (BTC) and Ethereum (ETH). Now, the company is extending these capabilities to business account holders, reflecting increased demand from merchants who want the same access to digital assets as consumers.
PayPal’s crypto embrace
PayPal business accounts will be able to transfer cryptocurrencies to external wallets, allowing merchants to send and receive digital tokens on blockchain networks.
For those unfamiliar with cryptocurrency, this announcement means that PayPal is making it easier for U.S. merchants and businesses to use digital assets in their operations. Businesses can now handle digital currencies much like traditional currency, with PayPal acting as the bridge between conventional finance and the growing world of cryptocurrency.
In August 2023, PayPal launched its stablecoin, PayPal USD (PYUSD), becoming the first major financial company to do so. PayPal USD debuted on the Ethereum blockchain and is backed by U.S. dollar deposits and short-term Treasuries.
After expanding to Solana, PYUSD’s weekly transaction volume jumped to over $500 million in May, up from $150 million. The total supply of PayPal USD across Solana and Ethereum reached $534 million, with 74% on Ethereum and 25% on Solana.
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