Unveiling PayPal’s Crypto Journey: A Deep Dive into the Empire Newsletter

The Rise of PayPal in the Crypto World

PayPal, the fintech giant, has been making waves in the world of cryptocurrency. While Mastercard and Visa have been dabbling in the space for a while, PayPal made a bold move by allowing US-based users to buy bitcoin and other cryptocurrencies directly from their app in October 2020. This move proved to be prescient, as the price of bitcoin surged in the following months, reaching new all-time highs.

According to PayPal’s SEC filings, users have been steadily increasing their holdings of crypto on the platform. In the first year and a half after adding crypto, users safeguarded around $600 million, which grew to $2.85 billion in the last quarter. Bitcoin made up about 60% of the crypto held in PayPal wallets at the end of Q1.

One of PayPal’s standout features is its decision to only offer a small selection of coins on its platform, including bitcoin, litecoin, bitcoin cash, and ether. This focus on proof-of-work cryptocurrencies sets PayPal apart from other exchanges that are listing tokens from proof-of-stake networks.

Despite its success in the crypto space, PayPal has been relatively quiet about its crypto business in earnings reports and analyst notes. However, the company’s stablecoin, PYUSD, has been gaining traction and recently reached a market cap of $499 million after integrating with the Solana network.

Analysts are optimistic about PayPal’s future, with the stock receiving an upgrade and the company focusing on “profitable growth.” PayPal’s venture capital arm has also made investments in the crypto space, showing a commitment to the industry.

Overall, PayPal’s foray into the world of cryptocurrency has been a success, and the company’s quiet growth in the space is speaking for itself. With the bullish tone towards PYUSD and potential future developments, PayPal could continue to make waves in the crypto world.

So, is PayPal a crypto company? Unequivocally. And it’s proof that all companies will one day be “crypto companies.” PayPal may have been early to the game, but its significant holdings of crypto on behalf of users solidify its position as a major player in the industry.

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