PayPal will allow US merchants to buy, hold and sell cryptocurrencies directly through their PayPal business accounts.
PayPal announced the move as part of its strategy to increase the role of cryptocurrency in everyday transactions for millions of businesses in the United States. At launch, the service will not be available to businesses in New York.
Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Now, the company is expanding those features to business account holders, reflecting growing demand from merchants who want the same access to digital assets as consumers.
PayPal’s adoption of cryptocurrencies
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 cryptocurrencies, this announcement means that PayPal is making it easier for US merchants and businesses to use digital assets in their operations. Businesses can now handle digital currencies like traditional currencies, with PayPal acting as a bridge between conventional finance and the growing world of cryptocurrencies.
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 Treasury bills.
Following its expansion to Solana, PYUSD’s weekly trading volume surged to over $500 million in May, up from $150 million previously. The total supply of PayPal USD on Solana and Ethereum reached $534 million, with 74% on Ethereum and 25% on Solana.
