PayPal has recently made public the details of its cryptocurrency assets in a quarterly report submitted to the US Securities and Exchange Commission.
According to the report, as of March 31, PayPal held a total of $943 million in cryptocurrency assets, reflecting a substantial increase of 56% from the previous quarter’s holdings of $604 million.
This significant increase in cryptocurrency holdings by the company could suggest that the company is looking to further expand its presence in the crypto market.
With its massive user base and reputation as a leading online payment platform, PayPal’s involvement in cryptocurrency could potentially increase adoption and mainstream acceptance of digital assets.
PayPal Considers Crypto Assets ‘Safeguarding Liability’
In its recent quarterly report to the SEC, PayPal revealed that it considers its cryptocurrency holdings a “safeguarding liability” due to the unique risks associated with digital assets.
The disclosure also states that the payment processor’s specific crypto assets remain unchanged since the previous quarter, consisting of Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, which the company allows customers in certain markets to buy, sell, hold, receive, and send.
According to the report, PayPal’s crypto assets made up 78% of the company’s total financial liabilities for the quarter, which amounted to $1.2 billion. This marks a significant increase of more than 10% from the previous quarter’s reported liabilities.
This suggests that the company’s commitment to cryptocurrency remains strong, and the company is continuing to view digital assets as an essential part of its financial strategy.
Customer Protection For Crypto Transactions
PayPal’s recent disclosure of its significant cryptocurrency holdings indicates that the payments provider continues to invest in the digital asset industry. However, as cryptocurrencies remain largely unregulated in the US, investors face unique risks associated with their holdings.
To address this concern, the company has implemented customer protection measures for its crypto transactions. According to the company’s terms and conditions, PayPal will protect customers from unauthorized purchase or sale activity and reimburse them for any unauthorized transfers up to a lifetime cap of $50,000.
BTCUSD barely halfway into the $25k region. Chart: TradingView.com
These measures provide some level of security for customers engaging in crypto transactions through the platform.
In recent years, PayPal has introduced various crypto features, including the ability to transfer holdings to third-party wallets and exchanges.
The company has also enabled crypto transfers on Venmo, allowing users to move their holdings to external wallets and transfer digital assets to others through the app.
Additionally, PayPal has partnered with ConsenSys to allow users to purchase ether via PayPal to fund their wallets.
-Featured image from Key Coin Assets