PayPal To Appoint Paxos For Supplying Cryptocurrencies: Sources

Jyoti  |  Jul 20, 2020

The US-base fintech giant PayPal is planning to introduce crypto trading for its users and for that the online payment company has chosen Paxos to manage its new services, according to sources.

A week ago, Paxos launched a plum assignment called Paxos Crypto Brokerage and the first customer to this assignment was Revolut US.

One of the sources has recently mentioned that very soon the PayPal and the Paxos would make a formal announcement regarding the new services.

PayPal Joins Fellow Payment Providers

The new service would help PayPal in becoming one of the most prominent mainstream companies that allow purchasing cryptocurrencies. Now, the fintech giant is going to join its fellow-traded payments provider Square and Robinhood.

Presently, Paxos has not said anything regarding this news, and on the other hand, PayPal is deciding which cryptocurrency it would offer to the customers.

A report published on June 22, stated that around 325 million users of PayPal and its subsidiary Venmo could soon enjoy crypto trading.

The new Paxos brokerage enables users to buy, sell, hold and send cryptocurrencies under all regulatory compliance.

Paxos brokerage is an API-based solution which helps businesses to launch crypto services.

Bitcoin Trading On Square Grows

Being a qualified custodian, Paxos has been certified to keep gold as well as digital assets on behalf of the institutional investors.

According to the reports, the other crypto unit of fintech apps status is growing rapidly in the market.

Earlier cryptocurrencies were considered as a pseudo-asset with the fringe appeal but in the present time, these assets have become important for fintech as well as challenger bank apps to generate revenue and customers.

As the Revolut made its entry in the US crypto trading market, the revenue generated by Square, the payment unicorn, after trading bitcoin started growing.

In the mid-2018, Square introduced Cash App for purchasing Bitcoin which recently generated the revenue of $306 million, according to the company’s earnings report.

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