PayPal enables US businesses to trade and store crypto

PayPal has expanded its cryptocurrency services by enabling US business accounts to buy, sell, and store digital assets directly through their accounts. 

Announced on September 25, this new feature gives millions of US merchants access to the growing cryptocurrency market. 

However, due to regulatory restrictions, the service will not be available in New York at launch. 

According to PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, Jose Fernandez da Ponte, "Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. 

We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly." 

This update allows business accounts to send and receive cryptocurrencies with third-party wallets, providing greater flexibility in managing crypto transactions. 

It also facilitates cross-border payments, positioning PayPal as a key platform for merchants seeking to integrate digital currencies into their financial operations. 

PayPal’s journey into cryptocurrency began in 2020 when it first introduced crypto services for personal accounts. 

This marked a shift toward mainstream crypto adoption, as PayPal users could buy, hold, and sell cryptocurrencies without needing specialized exchanges. 

In 2023, PayPal further expanded its crypto services by launching PayPal USD (CRYPTO:PYUSD), a US dollar-backed stablecoin, on the Ethereum network. 

In 2024, PYUSD’s functionality was extended to the Solana blockchain, enhancing its scalability. 

Despite recent challenges, such as a nearly 30% decline in market cap between August and September 2024, PYUSD remains a significant player among stablecoins. 

According to DefiLlama, PYUSD’s market cap dropped from $1.012 billion to $712.52 million during this period. 

However, PayPal’s ongoing efforts to promote the stablecoin’s use may help stabilize its market position in the future as digital currencies become increasingly integrated into business operations.