Cryptocurrencies

PayPal Adds Support for External Cryptocurrency Wallet Transfers

Back in October 2020, PayPal made headlines by adding cryptocurrency trading to its immensely popular platform. Then, in March of last year, the company expanded its efforts by introducing Checkout with Crypto — a feature that allowed PayPal users to easily pay for purchases using supported crypto assets. Now, the service is doubling down once again, adding the ability for customers to send and receive coins using external wallets.

In a blog post on PayPal’s site, the company’s SVP and GM of Blockchain, Crypto & Digital Currencies Jose Fernandez da Ponte revealed, “We are thrilled to announce that starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges,” adding, “This feature has been consistently ranked by users as one of the most requested enhancements since we began offering the purchase of crypto on our platform.” Before users can send or receive crypto assets on the platform, they’ll first need to complete an ID verification. This capability is now available to select customers in the United States and will be rolling out to all eligible users “in the coming weeks.”

As with other wallets, addresses are only valid for the coin type selected. Additionally, users are encouraged to either scan the QR code or copy and paste a wallet address to avoid mistakes. At this time, PayPal supports a total of four crypto assets: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Elsewhere in their post, PayPal announced that it had been granted a full Bitlicense by the New York Department of Financial Services. According to the company, this makes them the first firm to convert what was a conditional Bitlicense into a full-fledged one. As the FinTech notes, this latest step shows their “commitment to responsible innovation and expanding the accessibility and utility of digital currencies while fully complying with regulatory guidelines and best practices.”

Of course, PayPal’s big wallets announcement comes as the crypto sector has taken a hit. Currently, Bitcoin is trading for around half of its record high. Meanwhile, in an announcement that Gemini would be laying off approximately 10% of its staff, founders Cameron and Tyler Winklevoss declared that the industry had entered a “crypto winter.”

Although PayPal might not be the first outlet that crypto enthusiasts think of, there’s no denying that the platform’s popularity makes it a powerful force in driving cryptocurrency adoption. As a result, the company’s introduction of external wallet support is big and good news — and at a time when the industry could use some. Furthermore, PayPal has continued to signal its intentions to bring further crypto features to its platform. So, while things in the cryptocurrency community may seem a bit bleak now, there’s still plenty of reasons to have hope.

Other Articles by Jonathan Dyer