PayPal Enables Crypto Transactions for US Customers — Here’s What You Can Trade

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CCN2024/09/26 21:48

By:CCN

Key Takeaways

PayPal is expanding its cryptocurrency services to U.S. merchants.
New York businesses face a temporary wait as local regulations are stricter.
Currently, users can trade Bitcoin and other small cryptocurrencies.

PayPal Holdings has introduced crypto trading for U.S. business accounts.

Merchants can now buy, hold, sell, and transfer digital currencies directly from their PayPal accounts. This marks another milestone in the company’s growing involvement in the crypto space.

PayPal Launches Crypto Trading in US

PayPal Holdings has announced that it allows U.S. merchants to buy, hold, and sell cryptocurrency directly from their business accounts.

In addition to buying, holding, and selling cryptocurrency, PayPal enables U.S. merchants to transfer cryptocurrency on-chain to third-party wallets. This means that business account holders can send and receive supported cryptocurrency tokens to and from external blockchain addresses.

“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, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, PayPal.

“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.”

Which Crypto You Can Trade

While the service is initially unavailable to business clients in New York State, PayPal has indicated that it is working to address this limitation. The company is one of a select group of businesses that holds a BitLicense from the New York State Department of Financial Services, a notoriously stringent regulatory requirement.

PayPal currently allows its users to trade Bitcoin, Bitcoin Cash, Ethereum, Litecoin , and its newly introduced stablecoin, PayPal USD (PYUSD).

After announcing these expanded crypto services, Litecoin has emerged as the top performer. It experienced a price increase of over 3% to $67.72. This surge has pushed Litecoin above the ceiling of a descending trend channel, suggesting a potential slowdown in price decline or even a shift towards a more horizontal trajectory.

Litecoin is the best performer so far among the tradable cryptocurrencies on PayPal. l Credit: Giuseppe Fabio Ciccomascolo/InvestTech

The currency trades within a rectangular formation, bounded by support at $59.74 and resistance at $68.77. A decisive breakthrough either of these levels would likely indicate the future direction of Litecoin’s price. Additional support and resistance levels can be found at $63.00 and $79.00, respectively.

The rising trend of the Relative Strength Index (RSI) curve may serve as an early indicator of a potential upward price movement for Litecoin. However, it’s important to note that technical analysis alone cannot guarantee future price performance.

Previous Investment in Blockchain

PayPal Ventures has recently solidified its commitment to the crypto ecosystem further. It participated in the $55 million Series A funding round for Chaos Labs , a leading on-chain risk management startup.

Founded in 2022, Chaos Labs provides security and risk management solutions for decentralized finance (DeFi) protocols. The startup has gained significant traction within the DeFi space. It already serves prominent clients such as Chainlink, Uniswap, Aave, Curve, and dYdX.

This latest investment builds upon PayPal Ventures’ previous involvement in Chaos Labs. In 2023, PayPal Ventures’ venture capital arm co-led the startup’s $20 million seed funding round alongside Galaxy. Other notable participants included Coinbase, Uniswap, Lightspeed, and Hashkey Capital.

Furthermore, PYUSD successfully migrated from the Ethereum blockchain to Solana in May. To demonstrate the feasibility of this move, a transaction simulation was showcased at the Solana Breakpoint conference in Singapore on Sept. 20.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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