One of the largest online payment companies in the world, PayPal, has revealed that it owns roughly $1 billion worth of crypto on its financial statement. According to the company’s balance statement, it has customer assets in litecoin (LTC), Bitcoin cash (BCH), ether (ETH) and Bitcoin (BTC).The details were made public in the SEC’s 10-Q filing, a financial performance report due every quarter that must include financial disclosures.
PayPal revealed that it holds cryptocurrencies valued at $943 million. This represents a $339 million increase from the year’s end. The business keeps internal records of the crypto assets possessed by its customers, including the quantity and kind of crypto that each customer has. However, PayPal made it clear that it does not hold any digital assets apart from those of its customers.
Although there is currently no legal protection for cryptocurrency investors in the United States, PayPal has stated that, if consumers cooperate with the business, they will be protected from the full amount of any illicit buy or sale activity. Customers will also be compensated for unlawful transfers up to a lifetime maximum of $50,000.
Over the past several years, PayPal has expanded the types of cryptocurrencies it offers to its users. The payment processor made it possible for users to send money to other people’s exchanges and wallets in July 2022. This made it possible for users to purchase, store and trade digital assets via its app. Additionally, the company has been testing a function that would allow users to use cryptocurrency to pay for goods at the millions of retailers that accept PayPal.
The company also launched crypto transfers on Venmo recently. This makes it possible for users to transfer their cryptocurrency holdings to other wallets and send the funds to others directly from the app.
An Ethereum software startup called ConsenSys added a function allowing users to fund their wallets with ether purchased through PayPal last year. The goal of the action was to make it simpler for clients to buy and securely store cryptocurrency.
In light of the ongoing expansion of the cryptocurrency market, PayPal’s decision to store a sizeable quantity of crypto may portend a shift in the perception of digital assets. PayPal has a huge user base and a sizable impact on the online payments sector as one of the biggest online payment providers in the world. Its involvement in the crypto sector supports the legitimacy of the cryptocurrency market and broadens its appeal to users. Companies such as Bit Mining Ltd. (NYSE: BTCM) could see growing public interest in their offerings as a result.
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