Financial technology giant PayPal plans to offer crypto trade facilities directly to its 277 million active account holders. As per CoinDesk report, PayPal can actually be used as an alternative method of withdrawing funds from exchanges such as Coinbase, but this will be a first when it comes to providing direct crypto sales.
As per Yahoo finance, PayPal declined to comment on the plans.
It is unsure which crypto would be available or how many cryptocurrencies. The industry source said they expected PayPal “would be working with multiple exchanges to source liquidity.” The sources have mentioned San Francisco-based crypto exchange Coinbase and Bitstamp based in Luxembourg, are going to be possible exchanges. Bitstamp and Coinbase both declined to comment.
PayPal has a long-standing relationship with Coinbase that started as early as 2016. In 2018 Coinbase made U.S. customers immediate currency (fiat) transfers to PayPal. European Coinbase users had been able to withdraw to their PayPal accounts last year, followed by users in Canada.
PayPal isn’t the first big technology company to join the crypto or digital currency club. Two of social media’s largest companies Facebook and Twitter are highly interested in cryptocurrency and blockchain in general. According to yahoo news PayPal’s Chief Technology Officer Sri Shivananda said earlier this year the company wanted its own “perspective and view on [blockchain] technology itself to see how it can help us contribute to the concept of creating an open digital payments platform that can serve everyone.”
PayPal Holdings Inc. is based in San Jose, California with a market cap of $200 billion dollars, is an American company operating a global online payment system that supports online money transfers.