PayPal finally allows users to transfer their cryptocurrency holdings from their platform to other third-party options. PayPal crypto chief Jose Fernandez de Ponte said that they have been trying to make this change since 2021 and announced it during that year’s CoinDesk’s virtual Consensus event. This feature was the most requested highlight since they launched the online payments company’s crypto buy, sell, and hold service last October 2020.
Having open systems for crypto holdings has been a trend that other fintech companies are following. For example, Robinhood is developing a new crypto wallet that facilitates decentralized finance and non-fungible tokens.
The fintech giant is taking action to meet its users’ demands. The commerce and payments company also expressed that they were agreeable to the demand because they believe increased access is the key to a healthier online financial ecosystem.
The ability to move from PayPal’s crypto platform to third-party options will be available on Tuesday, June 14, to some US users except in Hawaii. Not until the coming weeks will it then be available for the other US crypto holders.
The Effects of PayPal on the Cryptocurrency Ecosystem
The fintech company seemed to have caused a crypto bull run when it announced that it was moving into digital assets. Allowing users to receive and send crypto turns PayPal into the largest digital wallet for blockchain. Walter Hessert, head of strategy of Paxos – Paypal’s infrastructure provider – said that this is a monumental step in adopting digital assets and Web3 into the mainstream.
When asked about the predicted rise in the use of PayPal due to the newly added convenient functionality, da Ponte said that the early signs in demand are very promising.
He is not sure if it will be about the number of incoming users or more about them adapting to the new cycle. That is because he is aware of the users who quickly adapted to their system and wanted access to more features. So, he sees it more about holders getting the knack of the learning curve instead and less about sophisticated users coming from other platforms.
PayPal seems to have a more conservative approach to crypto but is also involved in many crypto scenes. For example, they acquired Curv, a tech-heavy cryptocurrency custody company, last March 2021. Earlier this year, they were also exploring their very own stablecoin called “PayPal Coin,” which is backed by the US dollar.