PayPal has announced that it will allow businesses in the U.S. to buy, hold, and sell cryptocurrency directly from their accounts. This follows PayPal’s rollout of similar services for individual users through PayPal and Venmo in 2020.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Crypto, and Digital Currencies at PayPal, stated that business demand for cryptocurrency has been steadily growing. He said:
“Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly.“
According to PayPal, this service will expand to business accounts across the U.S., excluding New York due to stringent regulatory requirements. Although the company has received a BitLicense from the state, the timeline for rolling out the service in New York remains undetermined.
Businesses will not only be able to buy and sell cryptocurrencies like Bitcoin, but also transfer them to third-party wallets. This feature will provide U.S. businesses with greater flexibility in managing digital assets, and creating new transaction flows within the blockchain ecosystem.
The expansion of crypto services to businesses is part of PayPal’s broader strategy to strengthen its position in the digital asset industry. In August 2023, the company launched its stablecoin, PayPal USD (PYUSD), on the Ethereum blockchain. PYUSD is backed by U.S. dollar deposits and short-term Treasuries.
After expanding to Solana, PYUSD’s weekly transaction volume surged to over $500 million in May, up from $150 million. The total supply of PayPal USD on Solana and Ethereum reached $534 million, with 74% on Ethereum and 25% on Solana.
With this latest move, PayPal continues to assert its role as a bridge between traditional finance and the rapidly growing world of cryptocurrency. Businesses can now handle cryptocurrency as a mainstream currency, streamlining transactions and opening up new opportunities in business operations.
Related news: PayPal’s Stablecoin PYUSD Market Cap Surpasses $1 Billion
