- BTC and ETH account for the vast majority of PayPal’s crypto holdings, which amount to $291 million and $250 million, respectively
- Bitcoin accounted for the lion’s share of PayPal’s crypto holdings, totalling $291 million
The majority of PayPal’s crypto assets, which total $291 million and $250 million, respectively, are made up of BTC and ETH.
Bitcoin accounted for the largest share of PayPal’s crypto assets, amounting to $291 million, while ETH held $250 million. The remaining $63 million was comprised of Litecoin and Bitcoin Cash.
In the filing, PayPal acknowledged the unique risks associated with cryptocurrencies, such as technological, legal, and regulatory risks, and recognized a crypto asset safeguarding liability to reflect its obligation to protect the cryptocurrency assets that are kept for the benefit of its clients.
According to the company’s petition, PayPal uses a third-party custodian to keep clients’ cryptocurrency. PayPal stressed that the custodian is obligated by contract to keep client assets separate from proprietary or other assets, adding:
“We cannot promise that these legal requirements, even followed to the letter by the custodian, will be successful in avoiding such assets from being considered a part of the custodian’s estate under bankruptcy or other insolvency law.”
As previously mentioned, in November 2020 PayPal will introduce its “Hold and Sell” service for Bitcoin in the United States.The company has been actively pursuing the integration of blockchain and cryptocurrency into its services, including central bank digital currencies, according to Vice President Richard Nash. This move is part of PayPal’s larger mission to make digital payments more accessible and secure for its users.