[NEWS] PayPal now lets business accounts buy, hold and sell crypto assets

PayPal Expands Business Cryptocurrency Services, Allowing U.S. Business Accounts to Buy, Hold, Sell, and Transfer Bitcoin (BTC), Ethereum (ETH), and Other Supported Cryptocurrencies.

PayPal has announced a new feature that allows U.S. business accounts to buy, hold, sell, and transfer cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) directly from their PayPal business accounts. This service is available nationwide, although it will not be available in New York state at launch.

Jose Fernandez da Ponte, PayPal's Senior Vice President of Blockchain, Crypto, and Digital Currencies, stated in a release:

"Since launching the ability for consumers on PayPal and Venmo to buy, sell, and hold cryptocurrencies in their wallets, we’ve learned a lot about how consumers want to use crypto. Many business owners have expressed a desire to offer the same crypto features to their customers. We’re excited to provide this new service, making it easier for consumers to engage with digital currencies and meet that demand."

In addition to buying and selling, businesses will now be able to transfer cryptocurrencies to third-party wallets. This new feature allows businesses to manage cryptocurrency transactions more easily.

PayPal is expanding its operations by offering businesses the ability to purchase and hold Bitcoin and other cryptocurrencies on its platform, which is part of the company's rapidly growing digital currency initiatives.

These initiatives include the launch of a consumer-facing crypto service in 2020 and the issuance of the PayPal USD (PYUSD) stablecoin, pegged to the U.S. dollar, in 2023.

One of the objectives behind this new feature is to increase the circulation of PYUSD, especially considering that Tether (USDT) holds 75% of the stablecoin market share.

PayPal's strategy seems to be aimed at expanding PYUSD's market by making it easier and more convenient to exchange with other cryptocurrencies.

Expanding PYUSD's Market Share

According to Token Terminal, the stablecoin market has reached $160 billion (approximately ¥23 trillion), making it the third-largest crypto asset after Bitcoin and Ethereum.

The stablecoin market is expected to continue expanding, and increasing PYUSD's market share could lead to significant growth for PayPal.

With over 300 million active users worldwide, PayPal believes that it can naturally promote the adoption of PYUSD by introducing it directly to its existing user base. PayPal has already partnered with numerous online shopping sites and physical stores, and by offering discounts and reward programs for payments made with PYUSD, the potential for widespread adoption could be substantial.

Reference: PayPal
Image: Shutterstock

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