PayPal Holdings (PYPL.O) announced on Wednesday that it is enabling U.S. merchants to buy, hold, and sell cryptocurrency directly from their business accounts.
Cryptocurrency has transitioned from a nascent asset class to greater market acceptance, particularly following the approval of Bitcoin exchange-traded funds by the U.S. SEC earlier this year.
“Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers,” said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal.
PayPal entered the cryptocurrency market in 2020, allowing customers to buy, sell, and hold Bitcoin and other digital coins through the company’s online wallets.
It became the first major financial technology firm to embrace digital currencies for payments and transfers when it launched its dollar-backed stablecoin in August 2023.
Stablecoins are crypto tokens whose monetary value is pegged to a stable asset, helping protect potential investors from wild price fluctuations.
San Jose, California-based PayPal is also enabling U.S. merchants to transfer cryptocurrency on-chain externally to third-party eligible wallets.
However, these services will not be available for business accounts in New York State at launch, as noted on the company’s website.
Shares of PayPal have gained nearly 26% so far this year, reflecting investor interest in the company’s expanding cryptocurrency offerings.
This move positions PayPal as a key player in the growing digital currency space, catering to both consumers and businesses in the evolving financial landscape.