PayPal has reportedly partnered with Paxos to launch its crypto service
July 20, 2020, 2:45AM EDT
1 min read
Payments giant PayPal is said to have partnered with Paxos Crypto Brokerage to launch its crypto service.
CoinDesk reported the news on Monday, citing "two people familiar with the matter." One source said the partnership could be announced as soon as this week.
Paxos Crypto Brokerage was launched last week, with Revolut U.S. as its first client. The API-based brokerage service allows fintech firms to integrate crypto buying, selling, holding and sending capabilities into their own applications. Paxos handles all regulatory, technological, and liquidity aspects, while fintech firms take care of front-end experiences.
PayPal's crypto plans were only revealed last month, but in March, the company told the European Commission in a letter that it is developing crypto capabilities and is in favor of building an EU-level framework for crypto-assets.
PayPal's launch of crypto service would be massive since the giant has over 300 million users. Other major fintech firms that already offer crypto services include Robinhood, Square's Cash App, eToro, and SoFi. In contrast, some other fintech giants, such as Wealthfront and Betterment, are yet to hit the nascent market.
Paxos CEO Charles Cascarilla recently said that the firm's brokerage service could be "a major tipping point" for crypto adoption. Paxos is even prepared to scale its own internal exchange itBit to meet the demand of new clients, Cascarilla told The Block last week.