- PayPal in cooperation with Paxos could potentially be making an entry into the Digital Currency sphere.
- They are poised to enable customers to buy and sell Cryptocurrencies.
PayPal Holdings Inc. is an American payment company operating all over the world. They support online transactions and services as an electronic alternative to traditional paper. Founded in December 1998, this payment giant is now considering its penetration into the digital currency market.
Details of the Partnership Agreement
They have chosen Paxos to handle the new services by supplying the necessary support required by PayPal. Paxos Crypto Brokerage launched by Paxos last week. Revolut US was named as their first client. By this agreement, PayPal will become one of the most prominent mainstream companies to offer cryptocurrency exchange facilities.
Paxos, who has an NYDFS (a bitlicense), will be handling all the regulatory and technical challenges which allow PayPal and other fintech companies to integrate the buying, selling, holding, and sending virtual currency.
Road Ahead for Paxos and PayPal
Paxos CEO, Charles Cascarilla, recently stated that the company’s Crypto Brokerage would be one of the biggest turning points for the spread of Cryptocurrencies and the company itself. He further stated that Paxos was also preparing to expand its own internal exchange namely, itbit, so that they can effectively meet the demands of the new and potential customers.
PayPal can use this opportunity as a new and innovative way to bring new types of users and monetize Venmo, which has more than 52 million accounts. Looking at PayPal’s infrastructure one can say that they are well suited for adoption cryptocurrency.
PayPal promises that by just adding in some extra verifications to the existing account. Moreover, the users can purchase and deal with mainstream Cryptocurrencies including BTC, ETH, etc. However, they are worried about the FATF regulations which will limit the crypto transfers from other accounts.