Payments giant PayPal has launched a new feature that allows users to hold and interact with and other cryptocurrencies in their accounts.
The new functionality, called Cryptocurrencies Hub, will allow users to not only hold a balance in various cryptocurrencies but also engage in transactions involving these digital assets.
By accessing the Cryptocurrencies Hub, PayPal users will be able to buy, sell, receive, and send cryptocurrencies.
Moreover, they will have the option to utilize the proceeds from the sale of cryptocurrencies to make purchases through PayPal.
Users will also be able to convert between PYUSD (PayPal’s stablecoin) and other cryptocurrencies.
It is important to note that while users will have a balance in their Cryptocurrencies Hub, they will not actually possess the digital assets.
Instead, custody, trading, and transfer services for these cryptocurrencies will be performed by Paxos or other authorized service providers.
“Your use of the Cryptocurrencies Hub may depend on you having a personal PayPal account and a Balance Account in good standing, and us verifying the required identifying information you provide to us. You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account,” the company said.
Furthermore, users must provide the necessary identifying information for verification purposes, including their name, physical address, date of birth, and taxpayer identification number.
Residents of Hawaii, however, will not be able to access the Cryptocurrencies Hub as of now.
PayPal Has Linked Cryptocurrencies Hub to Personal Accounts
PayPal has automatically linked the Cryptocurrencies Hub to users’ personal accounts, with the login credentials for the latter serving as the access credentials for the former.
In order to access the Cryptocurrencies Hub for the first time, users must go through an identification process.
“For some uses of your Cryptocurrencies Hub we may request that you provide a picture of your face or other biometric information for identity verification purposes,” PayPal said.
The company added that it is the users’ responsibility to maintain the security and control of their account credentials, passwords, and other identification codes.
PayPal recommended keeping personal information, such as physical address, mailing address, and email address up to date in the PayPal profile.
The introduction of the Cryptocurrencies Hub comes shortly after the payment giants that it is rolling out its PYUSD stablecoin soon.
The dollar-pegged asset is issued by Paxos, a blockchain infrastructure firm that used to issue stablecoin.
Holders of PYUSD will be able to convert it into US dollars within PayPal’s network, as well as other cryptocurrencies supported by the company including Bitcoin, , , and .
Meanwhile, Democratic Congresswoman Maxine Waters (D-CA) has , arguing that the company should have waited for federal regulatory approval before proceeding.
“I am deeply concerned that PayPal has chosen to launch its stablecoin while there is still no Federal framework for regulation,” she said in a recent statement.