This briefing document reviews the key information from the September 25, 2024, press release “PayPal Enables Business Accounts to Buy, Hold and Sell Cryptocurrency”.

Key Takeaways:

• Expanding Cryptocurrency Access: PayPal is enabling U.S.-based business accounts to buy, hold, and sell cryptocurrency directly through their platform. This follows their earlier rollout of cryptocurrency services for individual PayPal and Venmo users in 2020.
• Meeting Business Demand: According to Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, “Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers.” This move directly addresses this demand, offering businesses a new way to engage with the digital economy.
• External Transfers Enabled: Businesses can now transfer supported cryptocurrencies to and from external blockchain addresses. This functionality provides greater flexibility and control over their cryptocurrency assets.
• Continued Cryptocurrency Focus: This announcement highlights PayPal’s ongoing commitment to expanding cryptocurrency utilization. Previous initiatives include:
• Launching the U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), in 2023.
• Enabling PYUSD as a no-fee funding instrument for Xoom, facilitating international transfers for friends and family.
• Making PYUSD available on the Solana blockchain for increased flexibility and user choice.

Quote: “Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency,” said 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.”

Important Notes:

• At launch, this functionality for Business Accounts will not be available in New York State.
• The press release provides background information on PYUSD, including its regulatory status, backing, and where it can be used.

Overall, this announcement marks a significant step in PayPal’s cryptocurrency strategy, further bridging the gap between traditional finance and the digital asset space for businesses.