PayPal customers' crypto holdings near $1 billion, mainly bitcoin and ether
Quick Take
- Electronic payments company said it’s “safeguarding” $943 million in crypto, including mainly bitcoin and ether.
- PayPal does not hold the cryptocurrency but instead uses third-party custodial services.
Electronic payments giant PayPal has disclosed it’s "safeguarding" nearly $1 billion in crypto assets despite being a relatively new player in the digital assets market.
A filing with the U.S. Securities and Exchange Commission PayPay revealed it is safeguarding $943 million in cryptocurrency. The bulk of the crypto being safeguarded is made up of $499 million in bitcoin and $362 million in ether, the statement said.
The reported amount, dated for the period ending March 31, was an increase of $339 million when compared to the previous period which ended at the end of 2022. The increase is likely partly attributed to the price of bitcoin and ether rising in recent months.
It appears the payments company, which owns Venmo, does not actually hold the crypto assets, but instead relies on outside custodial service providers.
PayPal said it engages “third parties … to provide certain custodial services” including “securing” its “customers’ crypto assets.” It also added, in its statement that, PayPal’s “third-party custodian holds the crypto assets in a custodial account in PayPal’s name for the benefit of PayPal’s customers.”
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.