The Strategist

PayPal launches cryptocurrency trading service

07/21/2020 - 08:31

In the near future, PayPal intends to launch its own service for trading and storing cryptocurrencies. To do this, the payment company entered into an agreement with the blockchain startup Paxos, Coindesk reports, citing its own sources.

Beau Giles via flickr
Beau Giles via flickr
According to the publication, PayPal intends to offer its customers the ability to directly buy and sell cryptocurrencies through the Venmo mobile payment service. It was acquired by the payments giant back in 2013 as part of its $ 800 million purchase of another payment service, Braintree, and PayPal itself was then still part of the eBay business. 

Last week, Paxos announced launch of its own brokerage business. Paxos Crypto Brokerage allows companies to integrate functions of buying, selling, storing and transferring cryptocurrency into their own mobile apps. The first client of the new product Paxos was the American division of the British fintech startup Revolut, which deals with cryptocurrency trading. Now Paxos intends to partner with PayPal as well.

None of the companies have officially commented on the launch of a new project yet. Earlier, PayPal intended to enter the cryptocurrency market through participation in the Libra project from Facebook. However, last fall, the payment company refused to participate in the project. The launch of the PayPal cryptocurrency trading service could be announced as early as this week, Coindesk sources say.