PayPal introduces cryptocurrency buying, holding and selling for US merchants

PayPal Holdings, Inc. has announced an important new feature for US traders, allowing them to buy, hold and sell cryptocurrency directly from their trading accounts.

This new feature is intended to improve the use of cryptography for businesses in the United States, excluding New York State, at launch.

New capabilities for business account holders

According to a September 25 press release, this move marks an important step in the company’s efforts to expand the utility of digital currencies for US businesses.

“Since we launched the ability for PayPal and Venmo consumers to buy, sell and hold cryptocurrency in their wallets, we’ve learned a lot about how they want to use their cryptocurrency,” said Jose Fernandez da Ponte, Senior Vice President of Blockchain. Cryptocurrency and digital currencies on PayPal.

He added that business owners had increasingly shown interest in having the same cryptocurrency capabilities available to consumers. With the new offering, the company can now meet this demand, allowing them to interact with digital currencies more easily.

The fintech giant is also introducing a new feature that allows transfers to it from external blockchain addresses. Account holders in the States can now send and receive compatible cryptocurrencies to eligible third-party wallets, allowing greater flexibility and utility for sellers engaged in e-commerce.

PayPal’s Expanding Crypto Ecosystem

PayPal first ventured into the crypto market in 2020, allowing customers to buy, sell, and hold assets like Bitcoin (BTC) through their online wallets. Since then, the platform has made several notable moves to integrate digital currencies into its wider ecosystem.

In August 2023, it was the first fintech company to launch its own US dollar-backed stablecoin, PayPal USD (PYUSD). Issued by Paxos Trust Company, PYUSD is fully backed by US dollar reserves, including Treasury bills and similar cash equivalents, and can be bought or sold through PayPal and Venmo at a 1:1 exchange rate with the dollar of the USA.

In April 2024, PayPal further expanded the use of PYUSD by enabling it as a funding option on its Xoom platform, which facilitates international money transfers. This allows users to send money abroad without transaction fees when using PYUSD, increasing its appeal for global remittances.

More recently, PYUSD was added to the Solana blockchain, giving users access to multiple blockchain networks for more control and flexibility in managing their digital assets.

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