- PayPal just launched its ‘links’ service to allow P2P crypto payments, with initial support for Bitcoin, Ethereum, and PYUSD transactions.
- The payments platform stated that the compatibility of the new feature will expand to other crypto assets in the future.
PayPal and Venmo recently unveiled PayPal World, a product of their partnership with the world’s largest payment systems and digital wallets, including Mercado Pago, NPCI International Payments Limited (UPI), and Tenpay Global. The new service is scheduled for a late 2025 launch, which aims to streamline international payments and remittances.
Hot on the heels of the PayPal World announcement, the digital payments giant introduced PayPal links.
Introducing PayPal Links for P2P Crypto Payments
The new platform opens up a new way for customers to send and receive money through a personalized, one-time link they can share in conversations. These include emails, chats, or text messages.
Alongside this is an expansion of its peer-to-peer (P2P) service to integrate cryptocurrency transactions, starting with support for Bitcoin (BTC), Ethereum (ETH), and the PayPal USD (PYUSD) stablecoin.
Additionally, the payments portal reminded users that personal transactions between friends and family will remain exempt from 1099-K reporting for taxation purposes. This extends to gifts, reimbursements, or splitting expenses.
PayPal’s Crypto Holdings and PYUSD
PayPal’s crypto holdings, including Bitcoin and Ethereum, are currently unavailable. However, based on its past declarations, it held $604 million in crypto custody in the 2022 fiscal year. Bitcoin accounted for $291 million, while Ethereum made up $250 million.
More recent public information focuses on PayPal’s various crypto-related services and its own stablecoin, PYUSD, rather than a detailed breakdown of its reserves in other cryptocurrencies. The company’s business model is to provide a platform for customers to buy, sell, hold, and transfer crypto, with custody services often provided by third-party partners like Paxos Trust Company. The balance that users hold in their PayPal accounts represents their ownership, but they do not directly hold the digital assets themselves.
Meanwhile, according to CoinMarketCap data, PYUSD has a 1.29 billion circulating supply. The stablecoin has a market cap of $71.77 million at the time of this report.
Multiple financial authorities globally regulate PayPal’s products and services, including its crypto-related offerings. It is licensed at the federal and state levels in the US, while registered under the Financial Conduct Authority (FCA) in the UK, Reserve Bank of India (RBI), Monetary Authority of Singapore (MAS), and more.
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