As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed the evolution of digital assets from a mere curiosity to a significant player in the global economy. PayPal’s latest move to allow U.S. merchants direct access to cryptocurrencies is not just another step forward; it’s a giant leap towards mainstream adoption.
PayPal plans to enable American businesses to buy, store, and trade cryptocurrencies directly from their PayPal commercial accounts.
In line with their plan to expand cryptocurrency usage in routine transactions across numerous American businesses, PayPal has unveiled a new initiative. Initially, this service won’t be accessible to businesses based in New York upon its initial release.
Starting from 2020, PayPal and its affiliate Venmo have enabled customers to purchase, trade, and possess cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). The company is now expanding these functionalities to business account holders, demonstrating a growing interest among merchants for the same opportunities in digital assets that consumers currently enjoy.
PayPal’s crypto embrace
Business accounts with PayPal will now have the capability to move cryptocurrencies to external digital wallets, thereby enabling merchants to both send and accept various digital currencies through blockchain networks.
To clarify, if someone is not familiar with cryptocurrencies, this announcement signifies that PayPal will simplify the process for U.S. merchants and businesses to incorporate digital assets into their day-to-day operations. In essence, businesses can now manage digital currencies in a manner similar to traditional money, with PayPal serving as the intermediary between conventional banking systems and the rapidly expanding crypto market.
In August 2023, PayPal introduced its own digital currency, called PayPal US Dollar (PYUSD), marking it as the first significant financial institution to take this step. This new currency made its appearance on the Ethereum blockchain and is supported by U.S. dollar reserves and short-term government securities.
In May, the transaction volume for PYUSD, after it moved to Solana, surged past half a billion dollars per week – an increase from $150 million. The combined circulation of PayPal USD on both Solana and Ethereum stands at about $534 million, with 74% held on Ethereum and the remaining 25% on Solana.
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2024-09-25 22:52