Zhitong Finance APP learned that PayPal (PYPL The US announced the expansion of its cryptocurrency services, allowing merchants to purchase, hold, and sell cryptocurrencies through their commercial accounts for the first time. This new initiative will align PayPal's merchant services with the features the company has already provided to consumers, and further solidify PayPal's position in the digital currency field.
Since 2020, PayPal has been supporting consumers to trade cryptocurrencies through PayPal and Venmo accounts, and has launched the stablecoin PayPal USD pegged to the US dollar, demonstrating its deep exploration and commitment to the digital currency field. Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency at PayPal, pointed out that the company has learned about users' demand for cryptocurrency through these services and found that business owners also hope their customers can enjoy the same functionality.
Although merchants can already accept cryptocurrency payments through services such as BitPay and Coinbase Commerce, PayPal's addition is expected to further promote the application of cryptocurrency in the business sector. It is worth noting that PayPal's new merchant feature will not be available in New York State when it is first launched. In addition, enterprises will be able to transfer digital currencies to qualified third-party wallets and support token sending and receiving with external blockchain addresses.
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Through these new features, PayPal not only provides merchants with more flexible cryptocurrency management options, but may also promote the adoption of cryptocurrencies in a wider range of commercial transactions. This marks another important step for PayPal in supporting digital currency innovation, while also giving the company a competitive advantage in the global fintech industry.
It is worth mentioning that Coinbase Global Inc. (COIN Two former executives from the United States, Vishal Gupta and Patrick McCreary, have previously stated that they are working together to launch an innovative cryptocurrency trading platform - TrueX. This new platform will use PayPal's stablecoin PYUSD as the primary trading currency.
It is understood that Gupta previously served as an exchange manager at Coinbase and was responsible for overseeing the issuance of USDC stablecoins at Circle Internet Financial Ltd. McCreary, on the other hand, was a senior engineer at Coinbase and both have work experience at Goldman Sachs.
PayPal's PYUSD stablecoin is designed to maintain a 1:1 exchange rate with the US dollar, aiming to serve as a bridge currency within and outside the cryptocurrency ecosystem, while providing a hedging tool for digital token price fluctuations. The TrueX exchange will initially be mainly open to investors from the United States and some international institutions.