PayPal, the leader in the payment industry, has announced in its latest financial report submitted to the US Securities and Exchange Commission (SEC) that it currently holds around $1 billion worth of crypto assets. The company's digital currency values have increased by $339 million since December 31, 2022, demonstrating that PayPal's crypto assets have been increasing in value. The payment giant holds a significant amount of Bitcoin (BTC) and Ethereum (ETH), with $499 million worth of BTC and $362 million worth of ETH as of March 31, 2023. Additionally, there is $82 million in "other" supported cryptocurrencies.
Third-Party Custodian in Charge of PayPal's Crypto Assets
PayPal supports several cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The company relies on trusted third parties for certain custody solutions, such as maintaining cryptographic key information for customers, securing their crypto assets, and protecting them against certain types of loss, including compensation against loss or theft. PayPal's latest quarterly report notes that the crypto assets are held by a third-party custodian in a custodial account under the name of PayPal for the benefit of its customers.
PayPal's Venmo Now Facilitates External Transfers of Cryptocurrencies
PayPal's recent financial report comes shortly after its announcement that Venmo now supports external transfers of cryptocurrencies to wallets and trading platforms. PayPal introduced external transfer support in June 2022 and has reported an increase in crypto usage following its initial support for digital assets in 2021. Both PayPal and Venmo offer a cashback reward system for crypto, encouraging users to engage with the world of digital currency.
PayPal's Growing Presence in the Crypto Market
PayPal's increasing presence in the crypto market is a sign of the growing acceptance of digital currencies by mainstream financial institutions. The company's support of multiple cryptocurrencies and its partnership with trusted third parties for custody solutions demonstrate its commitment to providing a secure and reliable platform for customers. PayPal's substantial holding of crypto assets reflects its belief in the long-term potential of digital currencies.
