PayPal, the renowned payment giant, has been making efforts to attract more crypto investors by offering them various services related to digital assets. Currently, selected customers in the United States can purchase, hold, sell, send, and receive cryptocurrencies such as Bitcoin, Bitcoin Cash, Litecoin, and Ethereum through PayPal. Additionally, PayPal has partnered with Paxos to introduce a U.S. dollar-backed stablecoin called PYUSD, with plans to make it available to customers worldwide in accordance with regulatory frameworks.
In its latest move towards embracing the Web3 industry, PayPal has announced the launch of a Cryptocurrencies Hub for select customers in the United States. This hub allows customers to convert between PYUSD stablecoins and other supported cryptocurrency assets. However, residents of Hawaii are unable to access the Cryptocurrencies Hub. PayPal has updated its terms and conditions to include the support of PYUSD stablecoins, providing customers with the ability to hold a Crypto Asset balance, buy, sell, receive, send, and convert between PYUSD and other cryptocurrencies.
It’s important to note that PayPal customers who hold supported digital assets will not have ultimate ownership of their crypto assets, as custody services will be provided by Paxos Trust Company. This custody arrangement is similar to that of Binance, which utilized Paxos Trust Company for BUSD stablecoins issuance. It’s worth mentioning that the Securities and Exchange Commission (SEC) declared unregistered securities for these BUSD stablecoins issued by Binance. PayPal emphasizes the importance of users being cautious with crypto addresses used for transactions, as lost coins cannot be retrieved. Furthermore, users are advised to maintain proper security measures for their personal identification documents.
PayPal’s alignment with the DeFi ecosystem, especially on the Ethereum network, signifies the company’s intention to tap into the growing crypto market. The market has been expanding at a faster rate than traditional financial institutions due to global geopolitical changes. Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, stated during the launch of PYUSD stablecoins that the company aims to collaborate with crypto exchanges, DeFi protocols, and even traditional financial institutions.
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The shift of PayPal towards embracing digital assets has significant long-term implications for the underlying value of cryptocurrencies. With hundreds of millions of global users and thousands of merchants relying on fast, secure, and scalable payment solutions provided by PayPal, the demand for digital assets is expected to soar in the upcoming years. This surge in demand will likely contribute to driving prices higher.
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