- According to rumors, the payment giant PayPal plans to partner with crypto broker Paxos to offer direct purchases of Bitcoin and other cryptocurrencies.
- A formal announcement of the partnership could be made later this week.
According to sources from the news portal Coindesk, the payment giant PayPal is preparing a partnership with Paxos. Both entities could team up to enable trading with Bitcoin and possibly other cryptocurrencies on PayPal. The service could be offered through the recently launched Paxos Crypto Brokerage.
The rumor comes just a week after Paxos Trust launched its crypto brokerage service, Paxos Crypto Brokerage. The product enables companies to integrate the buying and selling of crypto and storage functions into their applications. According to Paxos, it is an API-based solution that is easy to use and also takes regulatory aspects into account.
Buy Bitcoin on PayPal directly?
Although Coindesk sources do not reveal what cryptocurrencies PayPal might offer if the partnership is confirmed, it is very likely that at least Bitcoin will be offered. However, there is no certainty. Most recently, in a letter to the European Commission, the payment giant acknowledged Bitcoin’s growth and declared an interest in cryptocurrencies because they facilitate and improve existing financial services and payment processing.
Coindesk’s sources indicate that PayPal and Paxos may announce their agreement sometime this week. If confirmed, PayPal will become one of the largest mainstream companies adapting crypto trading.
Currently, PayPal has an estimated 325 million users worldwide and thus the Paxos brokerage service could bring new capital into the crypto market and have a positive short-term impact. Paxos CEO and co-founder Charles Cascarilla recently said the growing adoption of cryptocurrencies by companies and institutions is the beginning of a revolution:
The digital asset revolution has started and more and more companies (…) see it coming. With Paxos Crypto Brokerage, companies can leverage our expertise and regulatory compliance to easily and securely integrate crypto into their applications. We’re proud to offer financial market infrastructure that supports an open, digital financial future.
As reported by CNF, rumors that PayPal will introduce a trading service with Bitcoin have been circulating since the second half of June. At that time, another source said the payment giant would offer direct purchases of Bitcoin and other cryptocurrencies through its subsidiary Venmo.