PayPal Holdings, Inc. has announced a major new feature for U.S. merchants, enabling them to buy, hold, and sell cryptocurrency directly from their business accounts.
This new feature aims to enhance crypto usage for businesses across the United States, except New York State, at launch.
New Capabilities for Business Account Holders
According to a September 25 press release, this move marks a significant step in the companyâs efforts to expand the utility of digital currencies for businesses in the U.S.
âSince we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency,â said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal.
He added that business owners had increasingly shown interest in having the same cryptocurrency capabilities available to consumers. With the new offering, the company can now meet this demand, enabling them to engage with digital currencies more easily.
The financial technology giant is also introducing a new function that allows transfers to and from external blockchain addresses. Account holders in the States can now send and receive supported cryptocurrencies to third-party eligible wallets, allowing greater flexibility and utility for sellers engaged in e-commerce.
PayPalâs Expanding Crypto Ecosystem
PayPal first ventured into the crypto market in 2020, allowing customers to buy, sell, and hold assets such as Bitcoin (BTC) through its online wallets. Since then, the platform has made several notable moves to integrate digital currencies into its broader ecosystem.
In August 2023, it made headlines as the first financial technology company to launch its own U.S. dollar-backed stablecoin, PayPal USD (PYUSD). Issued by Paxos Trust Company, PYUSD is fully backed by U.S. dollar reserves, including Treasuries and similar cash equivalents, and can be bought or sold through both PayPal and Venmo at a 1:1 exchange rate with the U.S. dollar.
In April 2024, PayPal further expanded the use of PYUSD by enabling it as a funding option on its Xoom platform, which facilitates international money transfers. This allows users to send money abroad with no transaction fees when using PYUSD, increasing its appeal for global remittances.
More recently, PYUSD was added to the Solana blockchain, giving users access to multiple blockchain networks for more control and flexibility in managing their digital assets.
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