Payments behemoth Paypal has disclosed in a Form 10-Q financial report filed with the U.S. Securities and Exchange Commission (SEC) that it is holding nearly $1 billion in cryptocurrency assets. This news comes on the heels of Paypal’s announcement that Venmo now facilitates external transfers of cryptocurrencies to wallets and exchange platforms.
Paypal’s Crypto Holdings Increase in Value Since Dec. 31, 2022
Paypal’s latest quarterly earnings report, filed with the SEC, reveals that the payments giant is sitting on a substantial stash of bitcoin (BTC) and ethereum (ETH). As of March 31, 2023, Paypal’s crypto holdings include $499 million in BTC and $362 million in ETH, with an additional $82 million in “other” cryptocurrencies that the company supports. Impressively, Paypal’s crypto cache has surged by a whopping $339 million since December 31, 2022, when digital currency values were significantly lower.
Paypal is currently supporting bitcoin, ether, bitcoin cash, and litecoin, with the payments giant relying on trusted third parties for certain custodial solutions. According to the 10-Q filing, these solutions involve “holding our customers’ cryptographic key information, securing our customers’ crypto assets, and protecting them from loss or theft, including indemnification against certain types of losses such as theft,” as detailed in Paypal’s SEC filing. The payments company’s quarterly report adds:
Our third-party custodian holds the crypto assets in a custodial account in Paypal’s name for the benefit of Paypal’s customers.
Paypal’s latest quarterly report comes on the heels of its subsidiary, Venmo, announcing support for external transfers to wallets and exchange platforms. Paypal itself rolled out external transfer support in June 2022, and reported a surge in crypto usage following its initial support for digital assets in 2021. Notably, both Paypal and Venmo offer a cash-back-to-crypto reward system, adding an extra incentive for users to engage with the world of cryptocurrencies.
What do you think the future holds for Paypal’s crypto holdings and the wider adoption of digital assets in the traditional payments industry? Share your thoughts in the comments section below.