PayPal (PYPL) is set to enable its business clients in the U.S. to buy, hold, and sell cryptocurrency directly from their accounts, potentially broadening the market for the payments giant. After providing similar services to retail users through PayPal and Venmo for several years, the company noted a rising demand from business owners for cryptocurrency capabilities.
Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain and digital currencies, stated, “Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers.” The new service will also allow U.S. merchants to transfer cryptocurrency externally to eligible third-party wallets.
However, the service will initially not be available to clients in New York State, though no timeline was provided for when it might be. PayPal holds one of the Empire State’s stringent BitLicenses and a trust license from the Department of Financial Services.
Since 2020, PayPal has enabled consumers to manage cryptocurrencies directly, and last year, it launched its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), which achieved a $1 billion market cap this summer.
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