PayPal has announced a major update to its platform, allowing U.S. merchants to buy, hold, sell, and transfer cryptocurrencies directly from their business accounts.
This new feature builds on the company’s digital asset services for individual clients and offers digital currencies to millions of business people across the country. However, when the service is launched, it will not be available for business accounts in New York State.
PayPal Expands Cryptocurrency Offerings to Merchants
According to a press release, PayPal has introduced a new feature that enables U.S. merchants to purchase, hold, and sell digital assets including Bitcoin through their PayPal business account. This comes at the heels of numerous business owners who have shown interest in conducting business and managing assets through the use of digital currencies.
This move comes in the wake of the company noting that its business clientele is in dire need of the same cryptocurrency functionalities that are afforded to the retail clients.
Jose Fernandez da Ponte, the Senior Vice President of Blockchain, Cryptocurrency and Digital currencies at the company’s commented; ‘‘This new feature means that small business owners can engage with digital assets ‘frictionlessly.’’ With this, PayPal business account holders can participate in the digital currency transaction without having to move out of the platform thus improving their interaction with crypto.
Crypto Transfers to External Wallets Now Possible
The company will also allow US merchants to transfer crypto out of their accounts in addition to the buy, hold, and sell features. This means that business account holders can now purchase, sell, send and receive supported cryptocurrencies from and to other third-party blockchain wallets.
This new feature increases the potential of the company’s crypto services since it makes it easier for business entities to manage digital assets.
This new service also fits into the overall strategy of trying to bring digital assets into its services. Moreover, the company has nurtured its growth in the digital currency sector through offering consumer cryptocurrencies in 2020.
PYUSD Stablecoin Integration
The company’s latest announcement builds on its earlier digital currency initiatives, particularly the launch of its stablecoin, PayPal USD (PYUSD). Introduced in 2023, PYUSD is backed by U.S. dollar deposits and other high-quality assets such as U.S. Treasuries.
This stablecoin can be bought, sold, and held on PayPal and Venmo at a fixed value of $1 per PYUSD. In April 2024, the company’s added PYUSD as a funding option for its Xoom platform, allowing users to transfer money abroad without transaction fees when using the stablecoin.
Concurrently, former Coinbase employees have adopted PYUSD stablecoin as the default settlement currency for their new TrueX crypto exchange. Additionally, PYUSD has recently become available on the Solana blockchain, offering users the option to operate on multiple blockchains for increased transaction flexibility and control.
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