PayPal has announced that its users will be able to buy, sell and hold digital assets within the app starting from next year.
This is coming after the firm was granted a very rare conditional license by the New York Department of Financial Services. Given this, the app which boasts of over 346 million users worldwide will avail their users crypto storing and trading features from early next year.
The users of the app would be allowed to buy, sell, and trade Bitcoin, Ethereum, Bitcoin cash and Litecoin. Furthermore, the firm also announced that its users who wish to convert their crypto to fiat would be afforded that opportunity.
PayPal wants to push crypto-cash awareness before the arrival of CBDC
PayPal has also promised that they won’t be any hidden charges for buying, selling and storing digital assets on the app as every transaction carried out will be done in native fiat currencies. The company has made known its intention to extend the new crypto feature to Venmo and some select international markets in the early part of next year.
Paypal said it wants to increase crypto awareness in the app and drive the adoption of the crypto-cash as the world prepares for the arrival of Central bank digital currencies (CBDC).
Giving his review, President and CEO of PayPal, Dan Schulman said, “Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
PayPal teams up with Paxos to enable crypto custodial services
To make trading and custodial services easy, PayPal has enlisted the help of Paxos, a New York chattered trust outfit. In his official statement about the partnership, CEO of Paxos, Charles Cascarilla said, “Paxos is pleased to partner with PayPal to support their entry into the cryptocurrency marketplace”.
“We were the first company to receive a New York Trust Charter for virtual currency business activity, so it is fitting that we are also the first to support the Department’s new conditional licensing framework. PayPal’s selection of Paxos is a reflection of New York’s status as the gold standard for cryptocurrency regulation,” the CEO said.
PayPal is not slowing down at the moment as it has its sights set on building a blockchain framework in the future. PayPal Venture, an arm of the company invested in TRM Labs, a company that builds frameworks to help financial institutions prevent digital assets fraud and financial crimes.
PayPal Venture arm also invested in Cambridge Blockchain, a company that builds a blockchain identity management system. In its official statement, the company said it would continue to make moves to make the platform better for its users.
“PayPal will continue exploring the potential of distributed ledger technologies to improve financial services and assure they are faster, more secure and less expensive. The company intends to work hand-in-hand with regulators, governments and central banks in this quest,” PayPal said.
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