PayPal Introduces Its Cryptocurrencies Hub

The payment solutions provider PayPal has introduced a new service called Cryptocurrencies Hub, allowing customers to conduct cryptocurrency operations, like buying and selling.

According to the terms and conditions, Cryptocurrencies Hub includes various features, such as the ability to sell PYUSD stablecoin for other cryptocurrencies. Rumors about the company working on launching its own stablecoin first appeared as early as January 2022. In the beginning of 2023, PayPal had to reduce its workforce by around 2,000 employees, and subsequently announced the suspension of the project's development.

No matter what, PayPal launched its stablecoin on August, 7th. Fintech company Paxos is responsible for the issue of PYUSD. This organization also acted as the issuer of BUSD until it halted minting in February 2023 under pressure from U.S. regulators. PYUSD is backed by the dollar, U.S. Treasury bonds, and similar monetary equivalents, according to Bloomberg.

PayPall says that users will be able to utilize cryptocurrencies to pay for purchases through its hub. However, not everyone can use this service, as access to the Cryptocurrencies Hub is only granted to PayPal customers with “personal PayPal account and a Balance Account in good standing.” 

Unlike SimpleSwap, which services are sign-up free, in order to gain access to PayPal’s hub, users will have to verify identification details. It includes name, physical address, date of birth, and tax identification number. Furthermore, the PayPal terms and conditions note that residents of Hawaii are temporarily unable to use the crypto hub. We’ll follow further PayPal updates and will tell you what else this company will offer to the Crypto World.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.