In a bold move, fintech giant PayPal has expanded its cryptocurrency offerings by introducing a specialized hub for its exclusive clientele. This groundbreaking feature, embedded within its updated terms and conditions, empowers users to engage in activities like purchasing, selling, receiving, and sending Crypto Assets.
This encompasses various transactions, including cases where the profits from crypto asset sales are utilized to cover payments through PayPal, and for seamless conversion between the recently launched PYUSD token, a dollar-backed stablecoin, and other virtual assets.
The payment firm has elaborated on this concept, stating, “Any balance in your Cryptocurrencies Hub represents your ownership of the amount of each Crypto Asset shown. You will not hold the digital Crypto Assets themselves in your Crypto Asset balance.”
Currently, this service is accessible to users who maintain a healthy balance in their PayPal accounts. Additionally, the firm will verify essential identification details such as name, physical address, birth date, and taxpayer identification number provided by users. There’s also the possibility of requesting biometric data to ensure identity.
For some uses of your Cryptocurrencies Hub, we may request that you provide a picture of your face or other biometric information for identity verification purposes. If required, we will offer you an alternative to providing biometric information.
According to TronWeekly‘s report, the digital payment juggernaut garnered attention with the launch of its proprietary stablecoin, PayPal USD [PYUSD], following an extensive two-year development and evaluation period.
PayPal Native Stablecoin
This stablecoin is pegged to the U.S. dollar and grants users the ability to buy, sell, hold, and transfer it seamlessly on the PayPal platform. PYUSD boasts features like online shopping akin to conventional dollars or credit cards, as well as fee-free token transfers.
PayPal’s presence in the cryptocurrency landscape isn’t novel. It had already allowed customers to hold prominent cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Notably, the payment service provider disclosed in the first quarter of the current year that it held a cryptocurrency portfolio worth nearly $1 billion for its patrons. Beyond this, PayPal has strategically invested in blockchain startups and actively supported the migration to web3 technology.