Paypal Has disclosed in a Form 10-Q financial report filed with the U.S. Securities and Exchange Commission (SEC) that it holds nearly $1 billion worth of cryptocurrency assets. This news follows Paypal’s announcement that Venmo now allows external transfers of cryptocurrency to wallets and exchange platforms.
As of March 31, 2023, Paypal’s crypto holdings include $499 million in Bitcoin (BTC) and $362 million in Ethereum (ETH), with an additional $82 million in “other” cryptocurrencies that the company supports. This represents a staggering increase of $339 million since December 31, 2022 when the value of digital currency was significantly lower.
Paypal relies on trusted third-parties for certain custodial services. These services involve “holding our customers’ cryptographic key information, securing our customers’ crypto assets, and protecting them from loss or theft, including indemnification against certain types of losses such as theft,” according to the 10-Q filing. The payments company’s quarterly report adds that “our third-party custodians hold the crypto assets on a custodial accounts in Paypal’s name for the benefit of Paypal’s customers.”
In June 2021, Paypal rolled out an external transfer support program, allowing users to send digital assets from Venmo to wallets or exchange platforms. The payments giant also offers a cash-back to crypto reward system to encourage users to explore the world of cryptocurrencies.
What do you believe the future will hold for Paypal’s crypto holdings and the wider adoption of digital assets in the traditional payments industry? Please share your comments below.