PayPal: cryptocurrency trading service

Main article: Cryptocurrencies

2021: UK cryptoservice launch plan

On August 23, 2021, it became known that the payment company PayPal will soon launch a service for the purchase, storage and sale of cryptocurrencies in the UK. So far, cryptocurrency service is PayPal available only for US residents.

As noted, after the launch of cryptoservice PayPal in the UK, its residents will be able to buy Bitcoin Bitcoin Cash, Ethereum and Litecoin in the amount of from £1. Users from the UK will also have to educational to content access to and will be able to track courses digital assets in real time.^[1]

As in the USA, in the UK cryptocurrency operations are carried out through the platform Paxos Trust Co. PayPal stated that the launch of the service is carried out in close cooperation with the relevant regulatory authorities of the UK.^[2]

2020

Availability of cryptocurrency transactions

October 22, 2020 it became known that the PayPal will allow users to buy, store and sell cryptocurrency, as well as pay it with 26 million sellers.

In order to improve consumer understanding and adoption of cryptocurrency, the company introduces the ability to buy, store and sell selected cryptocurrencies, initially using bitcoins, Ethereum, Bitcoin Cash and Litecoin, directly in the digital wallet, PayPal the company said.

The service will be available to PayPal customers from the United States in the coming weeks. It will be distributed to international markets in the first half of 2021, the company noted. At the same time, users of the Venmo mobile payment service owned by PayPal will have the opportunity to conduct transactions with digital currencies. It will be possible to store cryptocurrencies in PayPal for free. In addition, by the end of 2020, the system will refuse to charge service fees for the purchase and sale of digital currencies^[3].

Announcement of a crypto-trading service from PayPal

In mid-July 2020, the company announced the launch of a PayPal cryptocurrency trading service. As a partner in this project, the payment system chose the blockchain startup Paxos. The PayPal also intends to use Venmo, a mobile payment service owned by the company, through which customers of the company will be able to directly buy and sell cryptocurrencies.

Paxos, a New York-based company, is developing the Paxos Crypto Brokerage service, which simplifies the deployment of cryptographic services for various enterprises. The new service allows companies to integrate the functions of buying, selling, storing and transferring cryptocurrencies into their own mobile applications. The first client was the fintech startup Revolut, and soon PayPal joined him.

PayPal starts the service for crypto trading

In his blog, Paxos CEO Charles Cascarilla noted that the emergence of a new brokerage service could be a "turning point" for the development of cryptocurrency, since the service will be able to reach a huge number of customers - from fintech applications to banks, brokers and e-commerce brands. One way or another, but thanks to the concluded transaction, PayPal can become one of the largest companies offering cryptocurrency trading - it is known that the company's customer base is about 325 million people.

It is still unknown which cryptocurrencies the fintech company intends to trade, although Paxos is legally allowed to store gold and digital assets, such as bitcoin (BTC) and ether (ETH), on behalf of institutional investors.

Earlier it was reported that the PayPal intends to enter the cryptocurrency market through participation in the Libra project from Facebook, but subsequently abandoned these. By launching a cryptocurrency trading service, the company is catching up, since a number of large platforms have been offering such services since 2018.^[4]

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