PayPal reportedly inching closer to digital currency service launch

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PayPal has reportedly partnered with digital currency exchange Paxos as part of the online payments company’s preparation to launch a digital currency buying and selling service.

Sources familiar with the matter was quoted by CoinDesk saying it is expected that PayPal will launch their digital currency service via Paxos’ Crypto Brokerage API, a service rolled out last week to enable “companies to integrate cryptocurrency buying, selling, holding and sending capabilities into their own applications.”

Is PayPal integrating digital currency services?

Since June, a rumor has been circulating that PayPal is looking to allow its 325 million users to buy and sell digital currency directly from PayPal and Venmo within the next three months. 

Since the rumor initially began circulating, there has been evidence that PayPal has researched the digital currency market and is developing some sort of feature or product that relates to digital currency. In its response to the “European Commission’s public consultation on building an EU framework for markets in crypto-assets,” the online payments giant said it will be “further developing capabilities” in blockchain technologies.

However, PayPal has neither confirmed nor denied whether this rumor is true, and neither PayPal nor Paxos has made an official announcement or confirmed the rumored partnership between the two companies.

More companies are offering digital currency products

Since 2018, several traditional finance companies, such as Robinhood and Square’s Cash App, have implemented digital currency buy and sell services into their platform. Paxos, which issues PAX stablecoin, is hoping that their Crypto Brokerage API will allow even more companies to implement digital currency buy, sell, and hold services into their platform. 

“We’re excited that this enables a major tipping point for the adoption of cryptocurrency. Instead of having to seek out new services and brands, consumers can access crypto through the brands and applications they trust – from fintech apps to banks to brokers to ecommerce brands,” Paxos CEO Charles Cascarilla said in a blog post announcing Paxos crypto brokerage API’s first user.

The Paxos Crypto Brokerage API allows companies like PayPal to focus on the user experience while Paxos handles the digital currency custody and regulatory compliance aspects. It is rumored that either PayPal or Paxos will officially announce their partnership later on this week.