PayPal, the global online payment system, is partnering with the stablecoin operator Paxos to offer cryptocurrency service for its more than 325 million active users worldwide.
The fintech giant is set to partner with New York-based Paxos startup for a cryptocurrency supply service, two anonymous insiders reported Coindesk this week. Although the partnership is yet officially unconfirmed, PayPal’s crypto ambitions are not a secret anymore.
According to one of the sources, the partnership where Paxos will act as a digital asset trading service supplier might be announced later this week. The rumors come just a few days after the official launch of the Paxos Crypto Brokerage service last Wednesday.
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The brokerage allows Paxos to offer regulatory compliance and digital asset trading service via the API integration. As stated in the press release, the company, which is also an issuer of the stablecoin PAX, has already partnered with Revolut US, the American branch of the British Fintech company.
PayPal entering crypto space
PayPal’s step into the crypto space is not yet confirmed, although not a secret anymore. The company has been hiring cryptocurrency and blockchain specialists for a few months already. Furthermore, in its letter to European Commission this March, the online payment giant revealed its belief in the future of cryptocurrency. The company also admitted it is closely monitoring both crypto and blockchain space and is developing the cryptocurrency capabilities:
Of particular interest for us is how these technologies and crypto-assets can be utilized to achieve greater financial inclusion and help reduce/eliminate some of the pain points that exist today in financial services.
PayPal though is not a newbie in the crypto industry. The company has been among the founders of the Facebook Libra project, however left the board back in 2019 without a clear explanation.
Furthermore, PayPal has been in collaboration with the US biggest cryptocurrency exchange Coinbase since 2016. The payment giant allows Coinbase users to sell their digital assets and deposit fiat currencies into PayPal wallet.
However, if the rumors will be confirmed, PayPal’s entering the cryptocurrency space might have a huge impact on wider crypto adoption.
