PayPal upgrades encryption functionality across the board, allowing corporate users to also buy and sell cryptocurrencies.

The payment giant PayPal is actively entering the crypto space, expanding its cryptocurrency services to corporate users, allowing US business customers to buy, sell, hold, and transfer cryptocurrencies.

From Consumer to Merchant Services

PayPal entered the cryptocurrency market in 2020, allowing customers to buy, sell, and hold Bitcoin and other virtual currencies using the digital payment company's online wallets.

According to a report by The Block, PayPal is extending this feature to business users, although the service will not be available to business accounts in the state of New York.

In a statement, Jose Fernandez da Ponte, the Senior Vice President of PayPal, said, "Since we introduced the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrencies in their wallets, we have seen that business owners also want to provide these cryptocurrency capabilities to consumers. We are excited to meet this demand by offering this new product, allowing them to easily use digital currencies."

PayPal also stated that it will allow U.S. merchants to transfer cryptocurrencies to eligible third-party wallets and receive supported tokens from external addresses. According to PayPal's website, the wallets currently supported include Metamask, Phantom, Ledger, and Magic.

PayPal's Strong Ecosystem Bridges Fiat and Web3

In addition to actively exploring the digital space, PayPal is also very friendly to cryptocurrency enterprises. Leveraging its strong relationship with banks, PayPal allows exchanges like Kraken, Coinbase, and the Australian exchange Independent Reserve to directly deposit funds using PayPal, saving the cryptocurrency industry from the plight of being shunned by many banks.

In August of last year, PayPal partnered with stablecoin issuer Paxos to issue the stablecoin PYUSD, which currently has a circulating supply of $700 million, ranking sixth among USD stablecoins. Its main application scenarios focus on remittances, B2B payments, and digital goods payments, utilizing PayPal's strong ecosystem support as a bridge between fiat and Web3.

Furthermore, to increase its stablecoin market share, PayPal and cryptocurrency custody company Anchorage Digital recently announced a stablecoin rewards program, where customers' PYUSD balances can generate interest in the future.

Interest on stablecoins? PayPal and Anchorage launch PYUSD rewards program