The global financial institution has expanded its crypto-related activities in the United States, thereby providing businesses with increased control over digital assets.
One of the world’s largest financial platforms, PayPal, is committed to providing blockchain-based services to both enterprises and consumers.
PayPal announced on September 25, 2024, that it would permit U.S. merchants to acquire, maintain, and dispose of cryptocurrency assets within their business accounts. PayPal’s most recent action is the most recent in a series of modifications that the commerce behemoth has implemented as it continues to integrate the cryptocurrency sector.
PayPal observed that businesses were anxious to satisfy the increasing demand for more comprehensive crypto services after the successful launch of crypto services for individual users.
PayPal’s dedication to offering merchants a broader range of crypto services and flexibility extends beyond the acquisition and disposal of digital assets. External onchain accounts are now accessible to merchants for cryptocurrency withdrawals.
Although PayPal has specified that this feature will be restricted to “eligible” wallets, the implementation of this feature also facilitates the involvement of additional businesses in DeFi. For instance, businesses that possess capital may be able to lend out assets in a variety of onchain lending protocols, thereby generating an additional yield on a merchant’s treasury.
Upon its debut on Solana on May 29, 2024, $PYUSD experienced meteoric growth. According to Step Finance data, the Solana-based supply of $PYUSD increased to over 663.4M tokens as a result of the generous liquidity provision incentives. Solana became the unofficial residence of PayPal’s crypto services, as it eclipsed Ethereum’s $PYUSD supply.
Nevertheless, the supply of PayPal USD on Solana has decreased as a result of the improvement in market conditions and the slowdown in $PYUSD reward campaigns. Solana maintained a supply dominance of 65.79% for the $PYUSD at its peak on August 28, 2024.
According to DeFiLlama data, this percentage has since decreased to 50.4%, with PayPal USD’s Solana-based supply presently at 354M.
It is improbable that PayPal merchants located in the United States will expedite the process of transferring their stablecoin holdings to the blockchain and utilizing them in Solana DeFi protocols. Nevertheless, the action underscores PayPal’s commitment to incorporating blockchain technology into its extensive product line and to responding positively to consumer feedback.
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