• PayPal announced that selected US customers can create a Cryptocurrencies Hub to access the crypto services, which are subject to its balance terms and conditions.
• PayPal crypto holders do not have access to their private keys, which ultimately denies them financial freedom.

As the United States Congress moves fast to formulate clear crypto assets and stablecoins regulations, institutional investors are already proliferating the industry in search of profitable investments. Veteran payment giant PayPal Holdings Inc. has already made several attempts to lure a growing number of crypto investors. Among them, PayPal currently offers selected United States customers the ability to purchase, hood, sell, send, and receive several digital assets including Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.

In addition, the payment giant in close partnership with Paxos introduced a U.S. dollar-backed stablecoin dubbed PYUSD. The PYUSD stablecoins are expected to ultimately be made available to its customers around the world in accordance with the respective regulatory frameworks.

Closer Look at PayPal and Cryptocurrencies Hub

In the latest move towards adopting the Web3 industry, PayPal announced the establishment of a Cryptocurrencies Hub for select customers in the United States. Having already rolled out several digital assets earlier, PayPal updated its terms and conditions to include its PYUSD stablecoins. Notably, the selected PayPal customers can now convert between PYUSD and another supported crypto asset. Unfortunately, Hawaii residents cannot access the Cryptocurrencies Hub. The company noted.

If you establish and access the Cryptocurrencies Hub, you will be able to hold a Crypto Asset balance, and buy, sell, receive, and send Crypto Assets, including in transactions where the proceeds from a sale of Crypto Assets will be used to pay for purchases through PayPal, and to convert between PYUSD and another Crypto Asset.

However, the company highlighted an important aspect of the crypto assets that holders of the supported digital assets will not have the ultimate ownership as third parties will be used for custody. PayPal noted that Paxos Trust Company – the same company used by Binance to issue the BUSD stablecoins that were deemed unregistered securities by the SEC – will be used to custody the customers’ digital assets.

Meanwhile, the company wanted users to remain vigilant on the crypto addresses used to send and receive digital assets as PayPal cannot retrieve lost coins. Additionally, the company cautioned users to maintain adequate security of their personal identification documents.

Notably, the company is aligning its services to the greater DeFi ecosystem, more so on the Ethereum network that has attracted a lot of global users. Moreover, experts believe the crypto market is growing at a faster rate than traditional financial institutions amid changing global geopolitical issues. According to Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, during the launch of PYUSD stablecoins, the company intends to work with crypto exchanges, DeFi protocols, and even traditional financial institutions.

Market Outlook

The shift of PayPal to digital assets has major implications on the underlying value in the long term. Notably, PayPal supports hundreds of millions of global users and thousands of merchants who require fast, secure, and scalable payment solutions. As a result, the demand for digital assets is expected to dramatically increase in coming years, which ultimately helps drive prices higher.

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