Crypto News: PayPal Reveals Nearly $1 Billion in Cryptocurrency Holdings on Balance Sheet
PayPal has disclosed in a 10-Q filing with the Securities and Exchange Commission (SEC) that it currently holds around $943 million worth of cryptocurrencies on its balance sheet.\
The digital payments giant has revealed that the cryptocurrencies held include popular digital assets such as bitcoin (BTC), ether (ETH), bitcoin cash (BCH), and litecoin (LTC).
The 10-Q filing is a quarterly financial performance report that provides insights into PayPal’s cryptocurrency-related activities. According to the report, the company has seen a significant increase of $339 million in customer crypto assets since the end of the previous year.
PayPal has clarified that it maintains internal records of its customers’ crypto assets, including the specific types and amounts held by each customer. However, the company does not hold any cryptocurrencies outside of its customers’ assets on its own balance sheet.
While regulatory protection for crypto investors is not yet established in the United States, PayPal assures its customers of protection against unauthorized purchase or sale activities in accordance with its terms and conditions. Additionally, the company offers reimbursement for unauthorized transfers, with a lifetime cap of $50,000.
PayPal has introduced several cryptocurrency features to its customer base over the past few years. In July 2022, it enabled customer transfers to third-party wallets and exchanges, providing users with greater flexibility in managing their digital assets.
More recently, PayPal expanded its offerings by introducing crypto transfers on Venmo, the popular mobile payment services app. This allowed users to transfer their holdings to external wallets and facilitated peer-to-peer crypto transfers within the app.
In collaboration with ConsenSys, PayPal integrated a feature in December of last year that enables users to purchase ether using PayPal, providing a convenient way for customers to fund their wallets with the popular digital currency.
PayPal’s disclosure of its substantial cryptocurrency holdings reflects the company’s increasing involvement in the digital asset space and its commitment to offering crypto-related services to its broad user base.
With PayPal’s strong presence and brand recognition in the payments industry, the company’s growing interest in cryptocurrencies is likely to drive wider adoption of digital assets and blockchain technology.
Related News: Industry Leaders Raise Concerns Over SEC’s Proposed Custody Rule Change
