PayPal Rolls Out Crypto Trading and Transfers For U.S. Merchants

PayPal continues to integrate support for cryptocurrency.

On Sept. 25, PayPal enabled U.S.-based merchants to buy, sell, or transfer cryptocurrency from within their PayPal business accounts. Merchants can also transfer digital assets to and from external wallets as part of the rollout.

However, the features are not yet available in the state of New York.

"Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers,” said Jose Fernandez da Ponte, the senior VP of blockchain, cryptocurrency, and digital currencies at PayPal. “We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."

The news follows PayPal's steady roll of crypto features in recent years.

The company launched support for consumers purchasing and selling cryptocurrency using PayPal and Venmo accounts in 2020. In 2023, PayPal followed up with the launch of its PYUSD stablecoin, with the company’s Xoom subsidiary onboarding PYUSD in April of this year.

Earlier this month, PayPal and Venmo also integrated support for Ethereum Name Service domains.

PYUSD market cap pulls back

Last month, PYUSD became the fifth-fastest stablecoin to break above $1 billion capitalization.

PYUSD’s rapid growth followed the token launching on Solana in May, with native money market protocols MarginFi and Kamino offering juicy incentives to entice deposits.

However, the incentives have since fallen, with PYUSD’s market cap falling 31.6% to $771 million since tagging an all-time high of $1.04 billion on Aug. 29. The supply of PYUSD on Solana is down 46.5% over the past month at $354 million, while its supply of Ethereum is up 1% over the same period, according to DeFi Llama.