PayPal Allows Business Accounts to Buy, Hold, and Sell Cryptocurrency

PayPal Holdings, Inc. has announced that it is enabling U.S. merchants to buy, hold, and sell cryptocurrency directly from their PayPal business accounts. However, at the time of launch, this new functionality will not be available in New York State. This initiative aims to enhance the use of cryptocurrency by providing expanded functionalities to millions of merchants across the country.

Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated, “Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency. Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly.”

In addition to the buying, holding, and selling capabilities, PayPal will allow U.S. merchants to externally transfer cryptocurrency on-chain to third-party eligible wallets. Business account holders will now be able to send and receive supported cryptocurrency tokens to and from external blockchain addresses.

PayPal has consistently taken significant steps to enhance the use of cryptocurrency. In 2020, the company introduced the ability for customers to buy, hold, and sell cryptocurrency directly from their PayPal and Venmo accounts. More recently, in 2023, PayPal launched a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). In April 2024, they enabled PYUSD as a funding instrument for their Xoom platform, allowing users to transfer money abroad to friends and family without incurring transaction fees. The stablecoin has also become available on the Solana blockchain, offering users enhanced flexibility and control with multiple blockchain options.