PayPal will soon offer cryptocurrency trading thanks to a recently formed partnership with Paxos. Paxos is a stablecoin operator based in the United States. The pair will work together to provide PayPal users with a brand new crypto-based brokerage service. The aim of the service is to facilitate the trading of crypto for everyday people, especially those who have limited knowledge of digital currencies.
More About the Deal
At the time the news story broke, it was not known which of the seemingly countless cryptocurrency assets would receive support from PayPal. This story comes on the heels of the recent announcement that Paxos plans on starting its own crypto brokerage that helps other companies implement cryptocurrency trading capabilities. This service is used with a basic application interface that guarantees full regulatory compliance. If everything goes as planned, the new service will empower PayPal to provide cryptocurrency trading features in the near future.
Why the Deal is Important
PayPal’s transition into the cryptocurrency arena is a significant development. This is a clear sign digital currencies are going mainstream. Prior to its pivot to crypto, PayPal was a Libra Association member. Libra Association is the governing council for the uber-popular social media giant Facebook’s planned stablecoin. PayPal exited this body in the fall of 2019 after extensive criticism from regulators as well as the general public. PayPal executives sent a letter to the European Commission this past spring suggesting the company was hard at work on forming its own nuanced capabilities for cryptocurrency trading.
A Closer Look at Paxos
As noted above, Paxos created its own Paxos cryptocurrency brokerage service to facilitate digital asset purchases and sales of varying products. Officially known as Paxos Trust Company, this group is a regulated financial institution that converts assets into digital form.
In short, Paxos’ cryptocurrency brokerage’s API-centered solution provides easy access to the multi-billion dollar crypto market. This is possible while satisfying all regulatory requirements. The co-founder and CEO of Paxos, Charles Cascarilla, states the company’s overarching goal is to provide the financial market infrastructure necessary for a truly open digital currency future.
Based in New York, Paxos is a fully regulated financial institution looking to help the world economy become truly frictionless. Paxos creates the infrastructure necessary to ensure the seamless transition of both digital and tangible assets. In short, Paxos is helping to create an economy in which every type of asset can be digitized and transmitted in an instantaneous manner, 24 hours a day, 7 days a week.
Paxos is also the first-ever regulated Trust business for digital assets. The company is the largest issuer of stablecoins subject to regulation including the white label Binance USD. You can find out more about Paxos’ new partnership with PayPal by visiting www.paxos.com.