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PayPal Holdings Inc., the digital payments giant, has disclosed that it holds almost $1 billion in cryptocurrencies on its balance sheet.
In a quarterly financial performance report filed with the U.S. Securities and Exchange Commission (SEC), PayPal said that it holds $943 million worth of cryptocurrencies on behalf of its customers. These assets include bitcoin (BTC), ether (ETH), bitcoin cash (BCH), and litecoin (LTC).
According to the report, the company has seen an increase of $339 million in customer crypto assets since the end of last year.
PayPal clarified that it does not hold cryptocurrencies outside of its customer assets on its balance sheet. The company maintains the internal record-keeping of its customers' crypto assets, including the amount and type of crypto asset owned by each of its customers.
Although there is currently no regulatory protection for crypto investors in the United States, PayPal has promised to protect its customers from "the full amount of unauthorized purchase or sale activity." In addition, the company will reimburse customers for "unauthorized transfers" for a lifetime cap of $50,000, as stated in its terms and conditions.
Over the past few years, PayPal has introduced numerous cryptocurrency features to its customers. It enabled customer transfers to third-party wallets and exchanges in July 2022. Furthermore, it recently rolled out crypto transfers on Venmo, its mobile payments services app, allowing customers to move holdings to external wallets and transfer crypto to others through the app.
In December of last year, ConsenSys, an Ethereum software company, integrated a feature allowing users to buy ether via PayPal to fund their wallets. The move was aimed at making it easier for customers to purchase and store cryptocurrencies securely.
PayPal's move to hold a significant amount of cryptocurrencies on its balance sheet could signal a shift towards mainstream acceptance of digital assets as the crypto market continues to grow.
