Giant global online global payment processor PayPal is partnering with Paxos for its upcoming project. The cryptocurrency brokerage will handle the new service’s supply of a digital asset.
CoinDesk, a leading online crypto-based news publication, was familiar with the matter said the announcement could be made as soon as this week. The Paxos Cryptocurrency brokerage has made the headlines in the last few days for good reasons. The API-based brokerage service announced a partnership with Revolut U.S to bring crypto investments to U.S-based customers.
The crypto brokerage enables FinTech firms to integrate holding, buying, and selling capabilities into their applications. Paxos takes charge of all the technological and regulatory issues while the FinTech firms deal with the front-end issues. PayPal has harbored crypto-related intentions for a while now. Last March, the firm wrote to the European Union about its crypto plans asking the EU to help develop a framework for cryptocurrencies.
Experiencing an Upsurge in Interest
Should the plans by PayPal come to fruition, the crypto service will be a massive step for the bitcoin community and the company’s over 300 million users. It appears like it’s the season for FinTech firms to join the crypto bandwagon.
Other major FinTech players that have already gone ahead include Square’s Cash App, Robinhood, SoFi, and eToro. Paxos Chief executive Officer Charles Cascarilla recently reiterated that his firm’s crypto brokerage service experienced an upsurge in interest. He told a leading publication the firm was at a significant tipping point in crypto adoption. He said:
“Paxos is even prepared to scale its own internal exchange itBit to meet new clients’ demand.”
Big Plus towards Crypto Adoption
The move by PayPal to enable users to buy and sell cryptocurrencies is a reversal for the firm. Last October, the firm backed out of the Libra Foundation, but it appears like it went on with the crypto plans. In November, PayPal ventures partnered with cryptocurrency risk management firm TRM labs. However, enabling users to buy and sell digital currencies will be a big plus towards crypto adoption.
The entry of PayPal into the cryptosphere may have looked like impossibility by the happening of Covid-19 has created renewed interest in bitcoin. The payment giant’s entry into the bitcoin market in this significant way will benefit the cryptosphere more than it will benefit the firm. The addition of a new feature to its payment Apps will serve in giving bitcoin more legitimacy. BTIG analyst Mark Palmer said recently:
“We believe PayPal is a clear beneficiary of the changes in consumer behavior arising from the stay-at-home orders in response to the pandemic.”