PayPal Holds Bitcoin, Other Cryptos Valued at $604M

Digital payment firm PayPal held an aggregate value of $604 million in four main cryptocurrencies, Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) for its customers as of the end of the last quarter.

The company showed the breakdown in its annual report to the US Securities and Exchange Commission (SEC). Accordingly, the company held a total of $250 million in ETH and $291 million in BTC. LTC and BCH make up the remaining $63 million.

PayPal entered the cryptocurrency space in 2020, enabling customers to purchase, trade, and keep some cryptocurrencies on its platform. As a result, customers who have Bitcoin, Ether, Bitcoin Cash, and Litecoin stored in their PayPal digital wallets are permitted to exchange such assets into fiat money at checkout to make purchases.

Users can also use their Bitcoin holdings as a funding source to make purchases at the millions of online stores that accept PayPal. It is worth mentioning that PayPal did not allow its customers to withdraw cryptocurrency to third-party wallets until June last year. 

Meanwhile, PayPal is not the only firm that held on to its Bitcoin holdings last year. Similarly, Tesla presented its fourth-quarter results report, which showed that the company still had $184 million worth of cryptocurrency on hand.

The Integration of Crypto in Payment Systems

In recent years, numerous digital payment platforms have adopted cryptocurrency. Users now have an easy way to purchase, sell, and store cryptocurrencies within the payment platforms, thanks to the integration. This has made cryptocurrencies easier to use and more accessible to a wider range of users.

Considering that other fintech businesses are growing their product lines, MoneyGram, a leading money transfer company, has also added cryptocurrency trading features to its mobile app. This feature is currently accessible in most U.S. states and allows users to buy, sell, and keep ether, litecoin, and bitcoin.

In a survey taken between June and September 2022, 88% of respondents, including the majority of banks, vendors, merchants, and payment institutions, feel that cryptocurrency will be crucial to the future of the payment system.