PayPal has secured a first-of-its-kind conditional Bitlicense from the New York State Department of Financial Services and will begin allowing its 346 million users to buy, hold and sell cryptocurrency directly from. from their PayPal account from the beginning of next year.
PayPal expects the service to drive widespread adoption of cryptocurrency as it prepares its network for the arrival of digital currencies issued by the central bank.
Dan Schulman, President and CEO of PayPal, said: “Our global reach, our expertise in digital payments, our two-way network and our rigorous security and compliance controls give us the opportunity and responsibility to facilitate understanding, redemption and interoperability We look forward to working with central banks and regulators around the world to offer our support and significantly contribute to shaping the role that digital currencies will play in the future of finance and the economy. global trade. ”
PayPal has partnered with Paxos, a New York State chartered trust company, to provide cryptocurrency trading and custody services.
“Paxos is pleased to partner with PayPal to support their entry into the cryptocurrency market,” said Charles Cascarilla, CEO of Paxos. “We were the first company to receive a New York Trust charter for virtual currency business activity, so it’s fitting that we are also the first to support the Department’s new conditional licensing framework. PayPal’s selection of Paxos reflects New York’s status as the gold standard in cryptocurrency regulation. ”
PayPal also aims for a blockchain-based framework for future iterations. In 2019, PayPal Ventures, the venture capital arm of the company, invested in TRM Labs, a company that aims to help financial institutions prevent cryptocurrency fraud and financial crime, and Cambridge Blockchain, a blockchain-based identity and compliance management software company.
In a statement, the company said, “PayPal will continue to explore the potential of distributed ledger technologies to improve financial services and ensure they are faster, more secure and less expensive. The company intends to work hand in hand with regulators, governments and central banks in this quest. “