Cryptocurrencies account for a large number of global transactions. Transferring funds using cryptocurrencies is far more convenient than traditional bank transfers, and it has attracted many people to use cryptocurrencies instead of fiat currencies. As a result, global payments firms such as PayPal have dedicated a considerable section of their capital to cryptocurrencies. The company has attempted to employ blockchain and crypto infrastructure in its services.
According to a Cointelegraph report, the international payment giant, PayPal, keeps a significant share of its capital in cryptocurrency. PayPal incorporated crypto payments two years ago, but it is the first time the firm has detailed its crypto asset breakdown. By the end of 2022, PayPal crypto holdings accounted for $604 million of the company’s capital, which included Bitcoin, Ethereum, Lite Coin, and Bitcoin Cash. BTC has the largest share of PayPal’s crypto holdings, worth $291 million, and next in line is ETH amounting to $250 million. LTC and BCH holdings also amount to $63 million.
Regarding the risks related to the volatility of the cryptocurrency market and the technical and safety issues, PayPal keeps the crypto holdings through a third-party custodian. Also, as noted in the report, PayPal has emphasized on separating customers’ funds from other proprietaries and assets.
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