PayPal, the online payments giant, reported in its 10-Q filing with the SEC that it held almost $1 billion worth of cryptocurrency on its balance sheet by the end of Q1 2023. The report showed that PayPal held $943 million worth of customers’ Bitcoin, Ethereum, Bitcoin Cash, and Litecoin on its balance sheet as of March 31, 2023. None of the cryptocurrencies belong to anyone other than PayPal’s customers.
Increase in Customer Crypto Assets The report also revealed that PayPal’s customer crypto assets increased by $339 million from the previous quarter, a 56% rise. This increase is mainly in line with Bitcoin’s 72% surge from $16,547 on December 31 to $28,478 on March 31. Currently, PayPal’s crypto holdings consist of $499 million in BTC, $362 million in ETH, and the remaining $82 million in BCH and LTC.
Crypto Services Offered by PayPal According to the 10-Q filing, PayPal allows its customers to buy, sell, receive, send, and hold cryptocurrencies. Additionally, customers can use the proceeds from their sales to purchase goods and services at checkout. The company maintains the internal recordkeeping of its customers’ crypto assets, including the type and amount owned by each customer.
Customer Protection PayPal also stated in the filing that it will protect its customers from unauthorized crypto purchases or sales and unauthorized crypto transfers up to $50,000 lifetime.
PayPal’s Crypto Support In June, the payments company enabled customers to withdraw crypto assets to personal wallets. PayPal CEO Dan Schulman expressed his bullish sentiment toward cryptocurrencies in 2020 during a web summit event, admitting that he personally owned Bitcoin in 2019. In March 2022, Schulman added that CBDCs, stablecoins, and digital wallets would redefine a lot of the financial world going forward.
PayPal co-founder Peter Thiel has also expressed respect for Bitcoin’s power, suggesting it could undermine the global strength of the US dollar. However, his VC firm cashed out of all its crypto holdings in 2023 after holding them for eight years.
In conclusion, PayPal’s reported increase in cryptocurrency holdings signals the company’s growing interest in the industry. PayPal’s continued support and innovative solutions in the cryptocurrency space will undoubtedly shape the future of online payments and commerce.