PayPal to Enable Cryptocurrency Buying, Holding, and Selling for US Merchants, Reports Reuters

PayPal Holdings has announced that it will allow U.S. merchants to buy, hold, and sell cryptocurrency directly from their business accounts. This move signals a shift in the perception of digital currencies, which have gained traction as a legitimate asset class over recent years, particularly following the approval of bitcoin exchange-traded funds by the U.S. SEC earlier this year.

Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated that there has been increasing demand among business owners for the same cryptocurrency functionalities that are available to individual consumers.

Since entering the cryptocurrency space in 2020, PayPal has offered customers the ability to buy, sell, and hold bitcoin and other cryptocurrencies through its online wallets. The company positioned itself as a pioneer in financial technology by becoming the first major firm in the sector to support digital currencies for payments and transfers when it introduced its dollar-backed stablecoin in August 2023. Stablecoins are designed to have a stable value by being pegged to a reliable asset, helping to mitigate the volatility often associated with cryptocurrencies.

In addition to allowing merchants to manage crypto transactions, PayPal will also enable them to transfer cryptocurrency externally to eligible third-party wallets. However, it is important to note that these services will not be available for business accounts in New York State at the time of launch.

So far this year, PayPal’s shares have increased by nearly 26%.