Mass Adoption Near? Anonymous Source Claims PayPal Has Chosen Cryptocurrency Exchange Service Provider "Paxos"

At the end of June, global payment giant PayPal and its subsidiary Venmo were rumored to be considering offering cryptocurrency trading services. One month later, today, "anonymous sources" from CoinDesk once again indicated that PayPal has selected a strategic partner to integrate with Paxos to provide liquidity for cryptocurrency assets for its large user base.

PayPal Embracing Cryptocurrency?

According to reports at the end of June, which also came from CoinDesk, an anonymous source mentioned that after integration, PayPal would be able to connect users directly to third-party cryptocurrency exchanges, allowing them to purchase Bitcoin and other cryptocurrencies through their online accounts. The report stated:

They will allow users to buy and sell cryptocurrencies directly from PayPal and Venmo, providing some sort of built-in wallet functionality, allowing users to store their crypto assets there, while also integrating with various exchanges to provide high liquidity for cryptocurrency trading. This feature may be officially launched within the next three months.

Previously, there were rumors that major exchanges like Coinbase and Bitstamp could be potential partners, but both exchanges as well as PayPal have declined to comment on these rumors.

Paxos Standard (PAX) in the Spotlight

The market capitalization of the USD stablecoin PAX is $249 million, ranking 43rd at the time of writing. It is issued by Paxos Trust Company, a legally compliant trust entity and the only institution regulated by the New York Department of Financial Services. It is said that PayPal intends to offer services through Paxos' recently launched cryptocurrency brokerage, Paxos Crypto Brokerage.

Last week, Paxos launched Paxos Crypto Brokerage, with the first partner not being PayPal, but the bank challenger Revolut that was reported mid-June. It was mentioned then that Revolut was trying to enter the U.S. market from Europe and would only offer cryptocurrency-related services in the future. Now, the collaboration with Paxos officially provides its U.S. users with the ability to trade cryptocurrencies.

The CEO of Paxos expressed confidence in the adoption of Paxos Crypto Brokerage during the product launch last week, stating in a blog post:

Revolut is one of Europe's largest and fastest-growing neo-banks. Through Paxos Crypto Brokerage's API integration solution, institutions can easily add trading, custody, and sending of cryptocurrencies to their applications.

However, Paxos currently refuses to comment on this news. Additionally, although Paxos is legally compliant and holds a New York Trust charter, a stablecoin report by CoinMetrics in early June indicated that 40% of PAX stablecoin trading volume was related to the "MMM BSC" Ponzi scheme.

As of now, traditional mainstream media outlets like TechCrunch have not reported on this event, with only Yahoo Finance reposting The Block's article.