Giant of global commerce PayPal has disclosed that it will permit customers with business accounts in the United States to acquire, store, and dispose of cryptocurrency directly from their accounts.
The decision is being made in response to the growing demand from business clients to utilize the crypto services that are available to them. Additionally, PayPal intends to expand its crypto presence in traditional business operations.
The announcement stated that the functionality for business accounts will not be accessible in New York State.
In 2020, PayPal and its peer-to-peer payments app Venmo became the first to enable consumers to administer cryptocurrency. The company has since made “consistently significant efforts to increase the utilization of cryptocurrency,” according to the announcement.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currencies, stated, “We have acquired a wealth of knowledge regarding their cryptocurrency usage expectations.”
“Business owners have been expressing a growing desire for the same cryptocurrency capabilities available to consumers.” We are enthusiastic about fulfilling that demand by providing this new product, enabling them to interact with digital currencies seamlessly.
Businesses Can Transfer Crypto on-chain to Third Party Wallets
The company also acknowledged that the new feature would enable business accounts to transmit crypto on-chain to third-party wallets.
“PayPal business account holders can now send and receive supported cryptocurrency tokens to and from external blockchain addresses,” it stated.
Crypto.com and PayPal partnered last month to facilitate the purchase of cryptocurrency for U.S. consumers. PayPal’s stablecoin is accessible on a limited number of other exchanges, such as Kraken, Coinbase, and Bitstamp, in addition to Crypto.com.
In 2023, PayPal introduced its native U.S. dollar-denominated stablecoin (PYUSD). PYUSD, issued by Paxos Trust Company, a U.S.-regulated entity, is a dependable option for digital transactions due to its robust security and compliance standards.
The PYUSD token was initially introduced as an ERC-20 token on the Ethereum blockchain. Nevertheless, it was recently made accessible on the Solana blockchain to enhance control and flexibility. In reality, PayPal’s PYUSD supply on the Solana blockchain surpassed Ethereum’s.