Fintech giant PayPal has reportedly partnered with Paxos Crypto Brokerage to launch its upcoming crypto services.
According to a report published by CoinDesk citing two people familiar with the matter Paxos, which launched the Paxos Crypto Brokerage with the American division of U.K-based fintech firm Revolut as a client, will be handling the cryptocurrency supply for PayPal.
A formal announcement on Paxos and PayPal working together, according to one of the sources, could be made this week. PayPal is set to become one of the most prominent mainstream companies offering cryptocurrency purchases, next to payments provider Square and stock brokerage app Robinhood.
Which cryptocurrency PayPal will let its users buy and sell is not clear, but reports suggest both its PayPal and Venmo platforms will allow a portion of the company’s 325 million users to buy and sell cryptoassets directly.
Paxos holds a New York state trust charter and is a qualified custodian, legally allowing it to hold gold and cryptoassets such as bitcoin and ether on behalf of institutional clients. Its crypto brokerage, an API-based solution to make crypto services easy for businesses to roll out, will see it handle all regulatory compliance aspects while letting clients buy, sell, send and hold cryptoassets.3
San Francisco-based cryptocurrency exchange Coinbase, which has a longstanding relationship with the fintech firm, was said to be in line to provide crypto offerings for PayPal, while European trading platform Bitstamp was also mentioned. Bitstamp, it’s worth mentioning, provides liquidity services for Revolut.
In a blog post, Paxos’ CEO Charles Cascarilla has said his firm’s new brokerage service could be a “tipping point” for the cryptocurrency space. The post suggested more clients are set to be announced in the near future.
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