Amidst a rising tide of cryptocurrency adoption, the year 2024 stands out as a pivotal moment, driven significantly by the introduction of Exchange-Traded Funds (ETFs).
This increasing embrace of digital currencies extends beyond individual investors to encompass the realms of Wall Street and governmental figures, who are displaying a keen interest in the crypto sphere.
Embracing Crypto: PayPal’s Strategic Move
Recognizing this shifting landscape, PayPal Holdings (PYPL.O) revealed its plan on the 25th of September to allow U.S. merchants to purchase, retain, and trade cryptocurrencies directly from their commercial accounts.
In a statement addressing this decision, José Fernández da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, highlighted,
“Since introducing the facility for PayPal and Venmo users to acquire, vend, and carry digital currencies in their wallets, we’ve gained valuable insights into their crypto usage preferences.”
Moreover, he elaborated,
“A growing number of business proprietors have voiced interest in accessing the same crypto functionalities offered to consumers. We are thrilled to cater to this demand through our latest provision, facilitating their seamless interaction with virtual currencies.”
Noteworthy Details
Nevertheless, the service will initially remain unavailable to business customers based in New York, as acknowledged by the firm without setting a timeline for potential expansion.
For context, PayPal holds one of the limited New York BitLicenses and also possesses a trust license from the state’s Department of Financial Services.
PayPal’s foray into crypto services dates back to August last year with the launch of PayPal USD (PYUSD/USD), a stablecoin pegged to the U.S. dollar, aimed at boosting the utility of digital tokens in transactions.
At present, it stands as the sixth-largest stablecoin, commanding a market cap exceeding $709 million, according to data from CoinMarketCap.
Furthermore, PayPal has empowered its clientele to trade various cryptocurrencies within their digital wallets, further solidifying its standing in the realm of digital assets.
Stock Movement Insights
Post the announcement, PayPal’s stock witnessed a minor decline, closing 1.25% lower at $77.36 in the regular trading session on the 25th of September.
However, the stock rebounded slightly with a 0.08% increase in after-hours trading, and in the latest update, it has surged by an additional 1.47%.