PayPal Holdings, Inc. has announced a new development for its U.S. merchants: business accounts can now directly buy, hold, and sell cryptocurrency through their PayPal accounts. However, businesses in New York State are excluded at this initial launch. This latest move underscores PayPal’s commitment to broadening cryptocurrency accessibility and utility among its vast network of U.S. merchants.
This new functionality reflects PayPal’s response to the growing interest from business owners in cryptocurrency options. Since introducing crypto transactions to PayPal and Venmo consumers, the company has gained valuable insights into how users engage with digital assets. Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, noted that business owners have increasingly expressed a desire for the same cryptocurrency capabilities as consumers. By meeting this demand, PayPal empowers merchants to effortlessly engage with digital currencies.
In addition to the new buy, hold, and sell features, PayPal has also introduced the ability for U.S. merchants to externally transfer cryptocurrency to third-party wallets. Business account holders now have the option to send and receive supported tokens to and from external blockchain addresses, enhancing the flexibility and control merchants have over their digital assets.
This step is part of PayPal’s ongoing strategy to integrate cryptocurrency into its platform. Back in 2020, PayPal first allowed its customers to buy, hold, and sell cryptocurrency directly through PayPal and Venmo. Last year, in 2023, the company introduced a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). Earlier in 2024, PYUSD was enabled as a funding option for Xoom, PayPal’s money transfer service, allowing users to make fee-free transactions for eligible transfers abroad. More recently, PYUSD became available on the Solana blockchain, offering users greater flexibility by choosing between multiple blockchains.
PayPal USD is issued by Paxos Trust Company, a regulated entity licensed to conduct Virtual Currency Business Activity by the New York State Department of Financial Services. The stablecoin is fully backed by U.S. dollar deposits, U.S. Treasuries, and cash equivalents, maintaining a 1:1 ratio with the U.S. dollar. Users can easily buy or sell PYUSD on PayPal and Venmo, ensuring seamless integration into their financial activities. With Paxos Trust Company overseeing the issuance and custody of PYUSD, PayPal continues to offer secure and reliable cryptocurrency solutions.
PayPal’s new cryptocurrency functionality for business accounts marks another milestone in its mission to provide accessible, versatile, and secure digital financial solutions. As merchants begin to utilise these new features, PayPal is poised to play an increasingly central role in facilitating cryptocurrency transactions for businesses of all sizes.
