PayPal now allowing US business accounts to trade crypto

PayPal is set to enable U.S. merchants to purchase, hold, and sell cryptocurrency directly through their business accounts, marking a significant step in integrating digital assets into everyday transactions. This new service, however, will not be available for businesses in New York at launch.

Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum. Now, in response to growing demand from merchants, PayPal is extending these capabilities to business account holders. This move allows businesses to manage digital currencies similarly to traditional currencies, with PayPal serving as a bridge between conventional finance and the cryptocurrency space.

Merchants will be able to transfer cryptocurrencies to external wallets, facilitating the sending and receiving of digital tokens on blockchain networks. This development simplifies the use of digital assets for businesses, enhancing their operational flexibility.

Additionally, in August 2023, PayPal launched its stablecoin, PayPal USD (PYUSD), making it the first major financial institution to do so. Backed by U.S. dollar deposits and short-term Treasuries, PayPal USD debuted on the Ethereum blockchain and has since expanded to Solana. Following this expansion, PYUSD’s weekly transaction volume surged from $150 million to over $500 million in May, with a total supply across both blockchains reaching $534 million—74% on Ethereum and 25% on Solana.

This initiative by PayPal underscores its commitment to expanding the role of cryptocurrency in commerce and providing businesses with the tools they need to engage with digital currencies.