PayPal, the global online payments services platform having a userbase of over 300 million users, reportedly joining cryptocurrency epoch to offer crypto services with Paxos.
However, the partnership is not yet confirmed. Few of the media outlets cited the information received from the internal sources of the company. Though, the complete information of the deal and assortment of different crypto assets yet to arrive officially from the firms.
The official announcement of the deal between PayPal and Paxos is on the cards maybe this week, as per the reports citing one of the sources.
Since 1998, PayPal is playing a crucial role in providing payment services world-wide and offering online money transfers and serving in the mainstream, as an electronic alternative to traditional paper methods, like money orders and checks. The extension into crypto purchases space would provide the American enterprise a new wave of growth and heading command over other existing businesses.
Paxos is a New York-based cryptocurrency (Bitcoin and Eth) and gold custodian catering institutional investors. The company has its own crypto exchange which is up and running by the name itBit, founded in 2012, offering digital assets trading to financial institutions and active traders. itBit is serving in 100 countries covering “fiat-to-crypto liquidity pools for USD: BTC, USD:ETH, USD:BCH, USD:LTC, USD:PAXG and more, as per the website.”
The official website and white paper of Paxos claim that the New York State Department of Financial Services regulated the Paxos Trust Company in 2015 and given the charter of trust. However, Paxos is yet to get the approval from the U.S federal government to regulate the Paxos Trust Company or Paxos Standard.
Reportedly, the deal with PayPal is seen as a much-awaited and profitable collaboration for Paxos due to the recent introduction of crypto brokerage services. Paxos with the launch of crypto brokerage API service, holding Revolut US, as it’s the first customer.
Paxos New API service- A Tipping Point for cryptocurreny Adoption
Paxos crypto brokerage is an API-based platform allowing fintech institutions to get benefits of crypto buying, selling, holding, and sending options while integrating with the platform into their own applications.
With crypto brokerage API provision, the company claims to provide various services to fintech firms and asserting them to manage all kinds of regulatory and technological challenges while offering liquidity aspects.
Revolut US is a European fintech startup (Consumer banking app) offering buying, holding, and selling services for Bitcoin (BTC) and ether (ETH) in 49 U.S. states. On July 15, the company collaborated with Paxos to widely offer services.
In a statement, Paxos CEO Chad Cascarilla said that the company is “lowering the barrier of entry for firms to get into crypto.” It’s just the “APIs required to be plugged in and we’ll provide you the regulatory ability and the technological capabilities to offer crypto for buying or selling.”
In a blogpost, Cascarilla mentioned,
“Crypto is currently a growing $200+ billion market, so traditional financial companies are increasingly considering how they can meet the demand for access. Given our experience building financial market infrastructure for digital assets, Paxos is the trusted partner to help non-crypto companies quickly offer crypto at scale”… “and crypto brokerage API service is a tipping point for the adoption of cryptocurrency.”