PayPal Explores Crypto Services with Cryptocurrencies Hub

PayPal has entered the digital asset arena with the introduction of its Cryptocurrencies Hub, offering users interaction with various crypto assets, including Bitcoin (BTC) and Ethereum (ETH).

Coinlive previously covered the recent launch of PYUSD, PayPal's native stablecoin backed by the US dollar.

PayPal initially ventured into the crypto realm in October 2020, allowing users to buy, sell, and hold assets in their accounts.

In March 2021, the company expanded its crypto services to enable customers to make purchases from other online businesses using cryptocurrencies.

The new Cryptocurrencies Hub complements PayPal's crypto offerings, aiming to provide a seamless experience for buying and selling cryptocurrencies.

Users can even use their crypto transaction proceeds to make purchases within the PayPal platform.

The integration of the Cryptocurrencies Hub with existing PayPal accounts allows easy access for users.

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This feature facilitates swift conversions between PYUSD and a diverse range of other digital assets, with the balance displayed in the Cryptocurrencies Hub representing the total amount of each asset.

What is PYUSD?

PYUSD, which stands for PayPal's native stablecoin, is a digital currency introduced by PayPal.

It's designed to be backed by the US dollar on a one-to-one basis, meaning that for every PYUSD in circulation, there's an equivalent amount of US dollars held in reserve.

This stablecoin serves as a digital representation of the US dollar, providing users with a way to hold a cryptocurrency that's tied to the value of a familiar fiat currency.

Updated Terms of Service

However, it's important to note that users do not hold the digital Crypto Assets themselves in their Crypto Asset balance, as clarified in the updated terms of service.

Access to PayPal's new crypto service is personalised and subject to specific eligibility criteria.

New users must open a personal PayPal account, maintain a Balance Account in good standing, and provide key identification information, such as full name, physical address, date of birth, and taxpayer identification number.

However, there's an exception: Hawaii residents are not eligible to use the new crypto service, as PayPal has excluded them from accessing the Cryptocurrencies Hub at this time.