PayPal now allows merchants to withdraw or deposit cryptocurrencies to and from other wallets, improving asset management options.
PayPal has announced a major update, allowing U.S. businesses to buy, hold, sell, and transfer cryptocurrencies directly from their business accounts.
This new feature brings the same digital asset services that were available to individual users to business owners. However, the service will not be available for business accounts in New York State at launch.
This move shows the increasing desire of the business people to engage in the use of digital currencies for business and investment. Jose Fernandez da Ponte, PayPal’s SVP of Blockchain, Cryptocurrency, and Digital Currencies said, “This new feature means that small business owners can engage with digital assets ‘frictionlessly.’’
Along with the purchase, storage, and sale of cryptocurrencies, merchants can now withdraw or deposit assets to/from other wallets. This is a plus for firms that want to handle their digital currencies other than through PayPal.
The update expands on PayPal’s earlier work in the crypto sector, such as the release of its own stablecoin, PayPal USD (PYUSD), in 2023. PYUSD pegged to USD deposits and US Treasuries can be used on PayPal and Venmo and for cross-border transactions through Xoom.
With this new service, PayPal plans to consolidate its position in the digital currency market and help companies better manage their cryptocurrencies.