PayPal is set to allow merchants in the United States to buy, store, and sell cryptocurrencies directly through their PayPal business accounts.
Paypal Announce this move As part of its strategy to increase the role of cryptocurrencies in the daily transactions of millions of businesses in the United States. At launch, this 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 capabilities to merchant account holders, reflecting growing demand from merchants who want the same access to digital assets as consumers.
PayPal embraces cryptocurrencies
PayPal merchant accounts will be able to transfer cryptocurrencies to external wallets, allowing merchants to send and receive digital tokens on blockchain networks.
For those who don’t know much about cryptocurrencies, this announcement means that PayPal is making it easier for merchants and businesses in the United States to use digital assets in their transactions. Businesses can now transact with cryptocurrencies like traditional currencies, with PayPal acting as a bridge between traditional finance and the growing world of cryptocurrencies.
In August 2023, PayPal launched its own stablecoin, PayPal USD (PYUSD), becoming the first major financial company to do so. PayPal USD debuted on the Ethereum blockchain and is backed by US dollar deposits and short-term treasury bonds.
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 is $534 million, with 74% on Ethereum and 25% on Solana.