PayPal Introduces Cryptocurrency Buying, Holding, and Selling for U.S. Merchants

In a significant move for the crypto space, PayPal Holdings announced on Wednesday that U.S. merchants can now buy, hold, and sell cryptocurrency directly from their business accounts.

This development comes as cryptocurrencies gain wider acceptance in the financial markets, particularly following the U.S. SEC’s approval of Bitcoin exchange-traded funds earlier this year.

“Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers,” said Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies.

PayPal first entered the crypto market in 2020, allowing individual users to buy, sell, and store Bitcoin and other digital assets through its platform. In August 2023, the company made headlines again by launching its own dollar-backed stablecoin, further solidifying its position as a leader in integrating digital currencies with traditional finance.

Stablecoins are designed to minimize price volatility by pegging their value to stable assets, offering a safer option for investors who may be wary of the fluctuations seen in other cryptocurrencies.

PayPal is also offering U.S. merchants the option to transfer cryptocurrency externally to eligible third-party wallets. However, these services won’t be available for business accounts in New York State at launch, according to the company’s website.

So far this year, PayPal’s stock has risen by nearly 26%, reflecting growing investor confidence in its forward-looking approach to digital payments.

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