PayPal clients’ cryptocurrency holdings reach $1 billion

The payments giant PayPal reported protection of nearly $1 billion in clients’ digital assets, despite a relatively recent entry to the market. This is stated in the report to the SEC.

According to the document, the bulk of assets held by the company consists of $499 million in Bitcoin and $362 million in Ethereum.

As of March, the total value of deposited funds on the platform rose by $339 million compared with 2022.

Under PayPal’s policy, the service does not hold cryptocurrency directly in its wallets, instead relying on external service providers.

Company representatives said they engage ‘third parties to provide certain protection services’ for their clients’ digital assets.

Earlier, the PayPal-owned mobile payments service Venmo integrated a feature to withdraw cryptocurrency to external wallets.

In July 2022, the payments giant added a similar option to its platform for Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

As of the end of 2022, the value of PayPal customers’ cryptocurrency holdings was $604 million. Of that, $291 million was Bitcoin, $250 million Ethereum, and the remaining $63 million were Bitcoin Cash and Litecoin.