Fintech giant PayPal, known to be a trustworthy online payment system, has joined Crypto Exchange Coinbase’s Travel Rule Universal Solution Technology (TRUST) network.
In a blog, Coinbase said, “By joining TRUST, companies become part of a rapidly growing coalition from around the world.” The blog also said, “the addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance.”
According to Coinbase, “TRUST is a global, industry-driven solution designed to increase compliance with a requirement known as the Travel Rule while prioritizing the security and privacy of customers.” The crypto exchange explained that the Travel Rule requires financial institutions to share certain basic information about their customers when sending funds over a certain amount to another financial institution.
“Custodial cryptocurrency exchanges (like other financial institutions) have to satisfy this rule, which was written before crypto even existed,” stated Coinbase.
Welcoming PayPal, Coinbase tweeted, “A warm welcome to PayPal for joining TRUST, a global coalition that provides top-tier privacy and security safeguards to customers across jurisdictions while complying with the Travel Rule.”
Furthermore, in its welcome post, Coinbase wrote, “PayPal has been a leader in digital payments for more than 20 years by leveraging technology to make financial services and commerce more convenient, affordable, and secure for more than 400 million consumers and merchants around the world.”
Circle, a P2P payment application, also welcomed PayPal and tweeted, ”Big day for the TRUST network as we welcome digital payment leader PayPal. Our industry-driven solution to balancing Travel Rule compliance with protecting customer privacy & security is now 38 members strong.”
Big day for the Travel Rule Universal Solution Technology (TRUST) network as we welcome digital payment leader @PayPal. Our industry-driven solution to balancing Travel Rule compliance with protecting customer privacy & security is now 38 members strong. https://t.co/OybFRjbmwU pic.twitter.com/eKmAYHBoLQ— Circle (@circlepay) August 22, 2022
Coinbase’s TRUST Network Already Has 38 Members
Since TRUST launched last February, it has already expanded to include 38 members, including Amber Group, Anchorage Digital, Balance, Binance.US, bitFlyer, BitGo, Bittrex, BlockFi, BlocPal, Cake DeFi, Circle, Coinbase, Coinhako, Coinsmart, Coinsquare, Crypto.com, Custodia, Fidelity Digital Assetsˢᵐ, Gemini, Kraken, Netcoins, Nexo, Paxos, PayPal, Prime Trust, Robinhood, sFOX, Shakepay, Standard Custody & Trust, Symbridge, Tetra Trust, TradeStation, Unbanked, VirgoCX, Voyager, Wealthsimple, Zero Hash, and Zodia Custody.
On the Flipside
- According to media reports, at the beginning of the year, there had been rumors that PayPal was working on its own stablecoin, a project that seems to be shelved for the time being, partly because of the unfavorable market conditions.
Why You Should Care
PayPal’s announcement comes two months after it rolled out infrastructure enabling users to transfer, send and receive digital assets between PayPal and other wallets and exchanges in June this year.