PayPal plans to partner with a US brokerage firm Paxos to provide crypto trading. According to the news that was done by CoinDesk on July 20, PayPal plans to roll-out crypto trading through Paxos, new brokerage service for stablecoins in the United States. So far, the company is still not clear which crypto assets will be supported. The company has not yet given further information on that, but it is yet to do so.
Paxos PayPal merge
Paxos introduced the Paxos crypto Brokerage Service officially on July 15, and that will help other firms integrate crypto trading functionalities. The new product will help companies do cryptocurrency buying, selling, holding, or sending through integration into their own applications. The service will be implemented through a simple application programming interface, and that will also ensure regulatory compliance. Through the service, PayPal will be able to introduce crypto trading features. Paxos will use API to help companies access the $200 billion cryptocurrency market while taking care of any technicalities that may arise.
The Digital asset revolution
When PayPal joins the cryptocurrency space, it will significantly influence the cryptocurrency industry and generally bring a lot of changes. More companies will join the space to integrate crypto into their applications without worrying about security or compliance. In general, there will be a development of the financial market infrastructure to support digital currencies.
PayPal is not the first firm to partner with Paxos. Revolut was the first partner to take advantage of Paxos offering for its market-lending consumer banking application. With Revolut, Paxos will be its custodian for crypto assets so that users can have increased liquidity to get excellent trading prices. Paxos is positive that many companies will get on board as they offer a unique service that is needed by the market. Currently, Paxos is the biggest provider of regulated stablecoins, such as Binance USD. In addition to Paxo’s primary offering, it also does a post-trade confirmation service, which is essential in trading.
PayPal has always been at the forefront when it comes to digital currencies. It was initially a member of the Libra Association, which is Facebook’s stablecoin. Due to a wave of politics, PayPal withdrew from the association in October 2019.
In Spring this year, PayPal did a letter to the European Commission that suggested a high chance that the firm is working on its own cryptocurrency.