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In the future, PayPal plans to work with global central banks to further tap on digital assets’ capabilities.
American payment company PayPal Holdings Inc (NASDAQ: PYPL) has partnered with Paxos Trust Company to provide crypto services. Notably, PayPal has also been granted a conditional Bitlicense by the New York State Department of Financial Services (NYDFS).
The move by the giant payment processing company to enter the crypto market is viewed as a huge disruption in the entire financial market.
Hereby, PayPal will allow its users to purchase, sell, and hold digital assets in the coming weeks. However, Venmo users will have to wait until next year when the company will provide crypto services. In the press release, PayPal noted that the move to digital assets has been accelerated by the ongoing coronavirus pandemic.
In addition to providing buy, sell and hold services, PayPal plans to enable more crypto utilities in its platform specifically by making it available as a funding source for purchases at its 26 million merchants worldwide.
PayPal and Crypto Market
PayPal seeks to capture the growing cryptocurrency market and use its advanced technology to improve the underlying blockchain technology.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president and CEO PayPal.
Schulman further noted that the company’s global reach, digital payment expertise and up to date security system will aid in making digital assets easily accessible and more interoperable with global currencies.
In future, PayPal plans to work with global central banks to further tap on digital assets capabilities. To start with, PayPal customers in the United States can purchase, sell, and hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin. This will be made possible through the PayPal digital wallet.
As a precautionary measure, the company will be involved in educating customers on the risks involved with the cryptocurrencies and also the greater scope of the crypto market.
Notably, PayPal announced that there are no service fees when buying or selling cryptocurrency through December 31, 2020. In addition, the company clarified that there are no fees for holding cryptocurrency in a PayPal account.
PayPal has been working with its internal team, PayPal Ventures that previously invested in TRM labs and also Cambridge Blockchain to develop a distributed ledger in order to improve its financial services.
Crypto adoption will move to the next level as PayPal has over 300 million active customers in approximately 200 global markets. At the time of writing, PayPal shares were up over 4.90% trading around $211.16. The company has a market capitalization of around $236.96 billion and 1.17 billion outstanding shares.