• PayPal held $604 million of cryptocurrencies at the end of 2022, with Bitcoin and Ethereum accounting for almost 90% of that figure.
• The company’s crypto holdings account for 67% of its total financial liabilities, amounting to $902 million as of December 31.
• PayPal introduced a service allowing U.S.-based customers to buy and sell specific cryptocurrencies in October 2020 and has since expanded the service to the UK.
PayPal Reveals Massive Cryptocurrency Holdings
Global payment giant PayPal held $604 million worth of cryptocurrencies for its customers by the end of 2022, with Bitcoin and Ethereum making up almost 90% of that figure. This marks the first time ever that PayPal has included a breakdown of its crypto holdings in an annual report to the U.S. Securities and Exchange Commission (SEC).
Crypto Holdings Accounted For 67% Of Total Financial Liabilities
PayPal’s total financial assets stood at more than $25 billion as per their filing, while their crypto holding accounted for 67% of their total financial liabilities, which amounted to $902 million as of December 31. The drop in cryptocurrency holdings is attributed to plunging crypto prices and deteriorating user trust in the industry following the crash of cryptocurrency exchange FTX.
U.S., UK Customers Can Buy And Sell Specific Cryptocurrencies
In October 2020, PayPal introduced a service allowing U.S.-based customers to buy and sell specific cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash. They have since expanded this service to UK customers as well with plans for more international expansion on the horizon.
Crypto Assets Secured By A Third-Party Custodian
PayPal stores customer assets through a third-party custodian who are contractually required to segregate customer assets from proprietary or other assets under bankruptcy or insolvency law protection measures enforced by them.
CEO Dan Schulman To Leave The Company By End Of Year
The news comes amid announcement from CEO Dan Schulman that he is leaving the company by year’s end but will remain a member on their board until further notice