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PayPal (PYPL) held a total of $604 million in cryptocurrency for its users by the end of 2022. According to its annual report to the U.S. Securities and Exchange Commission (SEC), the company held cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin cash (BCH) as of December 31 for its users.
- What: PayPal (PYPL) held a total of $604 million in cryptocurrency for its users by the end of 2022.
- Why: PayPal allowed its users to buy, hold, and sell cryptocurrencies on its payment platform in 2020.
- What next: Paypal will continue to hold crypto for its customers through a third-party custodian who must separate client assets from proprietary or other assets.
The two biggest cryptocurrencies by market value have around 90% of Paypal’s total amount. According to PayPal’s asset breakdown, Bitcoin accounts for $291 million of the company’s total crypto holdings, while ETH accounts for $250 million. The remaining $63 million consisted of LTC and BCH. But PayPal did not specify the breakdown for the two.
As of December 31, 2022, PayPal’s cryptocurrency assets were estimated to be worth $902 million, accounting for 67% of the company’s total financial liabilities. It is worth noting that despite this, PayPal has a financial portfolio with over $25 billion in assets.
PayPal introduced cryptocurrency trading in October 2020. However, this is the first time the company has included its holdings of different coins in its SEC filings. This level of detail is now mandatory, as per the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), introduced in March 2022.
According to the company’s petition, PayPal uses a third-party custodian to keep clients’ cryptocurrency. PayPal emphasized that the custodian is obligated by contract to hold client assets separate from proprietary or other assets.
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Source: https://insidebitcoins.com/news/paypal-held-604m-of-users-crypto-by-the-end-of-2022