PayPal Taps Paxos For Offering Crypto Services: Report

PayPal, one of the largest global payments giants, is partnering with Paxos to facilitate the supply of digital currencies for its upcoming crypto services.Citing two anonymous sources, Coindesk reported that the partnership between the two could be officially announced as soon as this week.

This came only days after Paxos launched its crypto brokerage services to enable companies to offer cryptocurrency trading, holding, and sending services. The platform highlights that it is handling regulatory, technological, and liquidity aspects of the crypto-related services while the fintech companies will only need to think about the front-end part.

Paxos Crypto Brokerage has onboarded Revolut US, the US subsidiary of the British challenger banking giant, to offer crypto services.

Fintechs are betting on Bitcoin

With over 300 million global users, Paypal is one of the largest payment facilitators. The company has also close ties with Coinbase as the crypto exchange users can purchase digital currencies with their Paypal account.

The payments giant now is planning to directly dive into crypto by offering buying and selling services, maybe more, media reports recently revealed. However, a leaked letter to the European Commission shows that Paypal was working on crypto capabilities even before March.

It is still not clear whether Paypal will only offer services with Bitcoin or add other digital currencies as well.

Notably, Paypal was one of the original members of the Libra Association, but it was also the first to pull out because of the rising regulatory concerns.

Though Paypal is yet to make any official decision on crypto, other similar payment platforms including Square’s CashApp, Revolut, and SoFi are already offering cryptocurrency services. In May, Square reported that its Q1 2020 revenue from its Bitcoin-based services with $528 million surpassed its mainstream financial services.

The introduction of crypto-based services by such traditional payments might also lead to the mainstream adoption of digital currencies.

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