Leading fin-tech company, PayPal, just launched its new offering allowing users to transfer, send and receive Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) to external wallets and hardware devices.
In October 2020, PayPal, expanded its cryptocurrency services permitting users to buy, sell and hold digital tokens including BTC, ETH, BCH and LTC. However, they were not allowed to move crypto holdings off its platform earlier. At he same time, the American financial service provider, was also granted a conditional Bitlicense by the New York State Department of Financial Services (NYDFS) to allow PayPal users with educational content to help them understand the cryptocurrency ecosystem.
We’re excited to announce that PayPal will begin supporting the transfer of cryptocurrencies between PayPal and other wallets and exchanges. This feature is rolling out to all eligible US customers in the coming weeks. Learn more: https://t.co/PelvFv7eRW pic.twitter.com/YkzPOV7teq
— PayPal (@PayPal) June 7, 2022
How Will The New Feature Work?
In the latest development, PayPal announced that crypto users can now move funds off its platform to other wallets and exchanges. The new feature will be available to select U.S. users starting Tuesday and eventually will be rolled out to all eligible U.S. customers in the coming months. The financial giant tweeted,
We’re excited to announce that PayPal will begin supporting the transfer of cryptocurrencies between PayPal and other wallets and exchanges. This feature is rolling out to all eligible US customers in the coming weeks. Learn more: https://t.co/PelvFv7eRW pic.twitter.com/YkzPOV7teq
— PayPal (@PayPal) June 7, 2022
“PayPal customers will be able to transfer supported coins into PayPal, move crypto from PayPal to external crypto addresses, including exchanges and hardware wallets, and send crypto to family & friends on PayPal in seconds.”
According to the official blog post, this move is all set to boost the adoption of cryptocurrencies. Users who transfer their crypto into PayPal can extend the utility of their crypto by spending using the platform’s, “Checkout with Crypto”, product at several merchants.
PayPal Bolsters Mainstream Adoption Of Digital Assets
Walter Hessert, head of strategy at Paxos, an infrastructure provider to PayPal, said that by allowing its customers to send and receive crypto, PayPal has become the world’s largest blockchain-enabled consumer digital wallet. He remarked,
“This is a monumental step in the mainstream adoption of digital assets and Web3”.
The Financial giant has also emphasized on additional identity verification process to ensure that transfers aren’t made without authorization. Jose Fernandez da Ponte, senior vice president and general manager for PayPal’s blockchain, crypto and digital currencies business, expressed that to help protect user privacy, PayPal will generate a new “Receive” address each time a user wants to send crypto to their account. He further added,
“PayPal has also been exploring the launch of its own stablecoin, and is interested in connecting users with web3, the catchall term for decentralized finance, nonfungible tokens, and other crypto applications, though no specific decision has been made.”
