PayPal to allow US Business accounts to trade cryptocurrency

PayPal has announced that it will allow its merchants in the United States to purchase, sell, and hold cryptocurrencies directly from their business accounts.

According to a press release by PayPal, the company said that New York State will not have access to this Business Accounts feature at launch.

"We have learned a lot about how users want to use their digital asset since we launched the ability for PayPal and Venmo users to purchase, sell, and hold crypto in their wallets," said Jose Fernandez da Ponte, PayPal Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies.

Paypal US Business accounts can now send crypto on chain to wallets

Furthermore, American retailers can now send cryptocurrency on chain to wallets that are approved by third parties externally through PayPal. Tokens for supported cryptocurrencies can now be sent and received to and from external blockchain addresses by holders of PayPal business accounts.

PayPal has consistently taken important actions to boost the use of cryptocurrencies. PayPal stated in 2020 that users could purchase, hold, and sell cryptocurrencies straight from their Venmo and PayPal accounts.

PayPal announced in 2023 that PayPal USD (PYUSD), a stablecoin denominated in US dollars, would be launched. The company made PYUSD available as a funding instrument for its Xoom platform in April 2024. This means that users can fund eligible transfers to friends and family who live overseas without having to worry about paying transaction fees.

PYUSD was most recently made available on the Solana blockchain, giving users the option of using multiple blockchains for more control and flexibility.

By putting PYUSD on the Solana blockchain, PayPal hopes to make it easier for users to make payments and transact in digital currencies that are stable. This integration will benefit users of Venmo and PayPal wallets by providing chain-agnostic PYUSD balances that hold steady regardless of the network hosting the assets.

Since their May launch, more than 377 million Solana-based tokens have been distributed. Meanwhile, Etherscan data indicates that 356 million Ethereum-based PYUSD tokens are in circulation.

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