The US giant payment company has officially joined the cryptocurrency space, days after Square announced their holdings of Bitcoin.
The news has sent enthusiasm to the crypto industry. The market has seen a big rally today, with Bitcoin jumping to US$12,900 per Bitcoin, the highest since Jul 2019.
Paypal announced a partnership with the company Paxos to allow its users to buy, hold, and sell cryptocurrencies. The services will be open to US customers in the next weeks, with plans for other countries to follow. PayPal plans to first support major coins such as Ethereum, Bitcoin, Litecoin, and Bitcoin Cash. Paxos- the cryptocurrency partner company will handle trading and custody for Paypal.
Paypal plans to allow users to make purchases with their cryptocurrencies in early 2021. The US payment giant also revealed that its more than 26 million merchants on the platform could accept cryptocurrencies as a funding source. The plan is also to add the cryptocurrency features to its Venmo app and launch in the international market in the first half of 2021. The company said in a blog post on Wednesday, that the global pandemic triggered by Covid19 had driven the needs for digital payments, although it has planned the move since late last year, and following PayPal’s short-lived alliance with Facebook’s Libra project.
Paypal has 346 million active accounts all over the world and processed $222 billion in payment transactions in the second quarter of 2020.
PayPal obtained first conditional cryptocurrency license- BitLicense
The company has obtained the first conditional cryptocurrency license from the New York State Department of Financial Services.
The New York State Department of Financial Services (DFS) said it granted the first “conditional BitLicense” to PayPal for a partnership with Paxos Trust Company to enable customers to buy and sell cryptocurrencies.
Paypal is the latest giant to join the cryptocurrency market in a week’s time. Last week, Square- another payment company announced its holding of Bitcoins, which sent a positive signal to the market as another mainstream giant to join the crypto bandwagon. Robinhood and Revolute are other financial services companies that allow users to buy, hold, and sell cryptocurrencies.