Unveiling PayPal’s Crypto Strategy: A Deep Dive into PYUSD and More
PayPal’s Crypto Journey: A Look at the Rise of PYUSD and Bitcoin Holdings
In the world of fintech giants embracing cryptocurrency, PayPal has emerged as a key player. While Mastercard and Visa have been dabbling in the space for longer, PayPal made a significant move in October 2020 by allowing US-based users to buy bitcoin and three other cryptocurrencies directly from its app.
This decision proved to be prescient, as the price of bitcoin surged in the following months, reaching new all-time highs. PayPal’s foray into crypto was further validated when it disclosed safeguarding around $600 million in user crypto in Q2 2022, a number that grew to $2.85 billion by the last quarter.
Bitcoin accounted for about 60% of the crypto held in PayPal wallets at the end of Q1, with users estimated to be holding around 24,000 BTC. Additionally, PayPal’s stablecoin PYUSD, issued in partnership with Paxos, has seen significant on-chain volume on Ethereum, reaching $5 billion.
Despite the success of its crypto offerings, PayPal has maintained a somewhat stealthy approach when it comes to discussing its crypto business in earnings reports and analyst notes. However, recent developments, such as the integration of PYUSD into the Solana network, have garnered positive attention from investors.
Analysts have upgraded PayPal stock and noted the company’s focus on profitable growth, with PYUSD ranking seventh by market cap. The recent investment of $6.5 million of PYUSD into digital transaction security firm Mesh further demonstrates PayPal’s commitment to the crypto space.
While PayPal may not be as vocal about its crypto endeavors on Wall Street, its actions speak volumes. With former CEO Dan Schulman expressing optimism about crypto’s future as a payment method, PayPal’s continued growth in the crypto space is something to watch.
As the company prepares for its upcoming earnings report, all eyes will be on how PayPal’s crypto business continues to evolve and contribute to its overall success.
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