US firm PayPal (PYPL) launched its cryptocurrency service this week. Users in the UK can buy, hold, and sell digital currencies. Those included are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The service will be available this week.
PayPal’s move marks the first international extension of its cryptocurrency service. The firm launched it in the US last year and initiated a UK expansion off the back of its success. Aside from the buy, sell, and hold services, PayPal will allow clients to track crypto prices in real-time and find educational content on the market.
“It has been doing really well in the US,” said Jose Fernandez da Ponte, PayPal’s general manager for blockchain and digital currencies. “We expect it’s going to do well in the UK.”
Much like with the US version of the service, the company is working with Paxos, the New York-regulated financial institution. Paxos enables PayPal’s clients to buy and sell crypto in the UK. The online payments giant stated that it has also worked with the relevant UK regulators to launch the service.
Expanding the Reach of Cryptocurrencies
PayPal hopes to encourage further mainstream adoption of the asset class with its crypto service. The California-based company has over 403 million active accounts globally. It is among the largest mainstream financial companies to provide its customers access to digital currencies.
“The tokens and coins have been around for a while but you had to be a relatively sophisticated user to be able to access that,” said Jose Fernandez da Ponte. “Having that on a platform like ours makes a really good entry point.”
PayPal entering the cryptocurrency arena in the UK means that it is competing with Coinbase Global Inc. and Revolut. Like with Revolut, PayPal users won’t be able to move their digital tokens outside of the app.
To Sum Up
Despite the volatility and regulatory woes associated with digital currencies, PayPal isn’t the only large company making moves in the cryptocurrency space. Facebook, Mastercard, Square Inc., and Tesla have various projects and plans to incorporate cryptocurrencies into their business strategy.
“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support— and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,” Jose Fernandez da Ponte stated.
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