PayPal's crypto holding amount close to $1 billion | Business Upturn

PayPal’s crypto holding amount close to $1 billion

PayPal currently has client assets in the form of Bitcoin valued at $499 million (about Rs. 4,095 crore).

According to the company’s most recent financial report, PayPal has crypto holdings worth around $1 billion (approximately Rs. 8,210 crore). PayPal is a US-based online payment processor that also permits customers to carry out cryptocurrency-related transactions. Bitcoin and Ether, the leading two cryptocurrencies at this point, make up the majority of PayPal’s cryptocurrency holdings. The business provided the US Securities and Exchange Commission (SEC) with this information in a file.

PayPal presently has client assets in the form of Bitcoin worth around $499 million (about Rs. 4,095 crore). PayPal is in charge of another sizable portion of user assets at $362 million (or roughly Rs 2,971 crore).

The total amount of all supported cryptocurrencies by PayPal is $943 million (approximately Rs. 7,740 crore), with around $82 million (nearly Rs. 673 crore) being contained by other cryptocurrencies.

The company reported that the amount of crypto assets held by its consumers increased by $339 million (approximately Rs. 2,782 crore) in the outcomes report.

According to PayPal’s filing with the SEC,“We maintain the internal recordkeeping of our customers’ crypto assets, including the amount and type of crypto asset owned by each of our customers in that custodial account. As of March 31, 2023, we utilise one third-party custodian; as such, there is concentration risk in the event the custodian is not able to perform in accordance with our agreement.”

As part of its cryptocurrency services, PayPal currently accepts payments in Bitcoin, Ether, Bitcoin Cash, and Litecoin. The network relies on other partners for custodial services like maintaining PayPal clients’ private crypto wallet keys and putting in place security layers for protecting the assets in custody.

In December of last year, PayPal entered the European Union (EU) market through Luxembourg after experimenting with cryptocurrency services in the US.

A special council was established by the payments processor in February to serve as its counsel on digital currencies, cryptocurrencies, and blockchain technology.

PayPal may be thinking about including risk mitigation services to its range of services as part of its future plans given the growth in crypto-related activity it has seen recently.

PayPal and Chaos Labs, an on-chain risk optimiser, co-led a $20 million (approximately Rs. 160 crore) seed fundraising round in February of this year.