PayPal Holdings announced a major expansion of its cryptocurrency services, allowing U.S. business owners to buy, hold, and sell digital currencies directly from their business accounts.
The decision comes in response to rising demand from businesses, said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal.
PayPal, which first entered the cryptocurrency market in 2020, has long allowed consumers to buy, sell, and hold digital currencies like Bitcoin through its platform. This new offering extends similar capabilities to businesses, enhancing the flexibility of PayPal’s crypto services.
In August 2023, the San Jose-based company became the first major financial technology firm to introduce a dollar-backed stablecoin, providing users with a more stable digital currency for payments and transfers. Stablecoins are pegged to stable assets to reduce volatility, a concern for potential investors.
Additionally, PayPal will allow U.S. merchants to transfer cryptocurrencies externally to eligible third-party wallets. However, these services will not initially be available to business accounts in New York State, according to the company’s website.
