By the time of publication, there has not been an official statement by either one of the partners. Digital asset industry insiders are expecting a press release by next week.
PayPal’s efforts in the digital asset space
PayPal, the giant payment platform provider, is again attracting attention in the digital asset space. The company’s interest in advancing the mainstream adoption of digital assets has been clear for some time now.
Moreover, PayPal signed a non-binding letter of intent to participate in the Libra Association in 2019. In the end, the company decided to not participate in the association. Instead, it continued focusing on unilaterally developing the capabilities necessary to provide greater access to financial services.
PayPal’s search for partnerships to launch digital asset services does not come as a surprise. The digital asset industry has been expecting an announcement from the payment platform provider since PayPal’s response to the European Commission’s public consultation. In this, PayPal emphasized that it is continuously monitoring and evaluating the digital asset, distributed ledger and blockchain space. In addition, the company highlighted its interest in achieving “greater financial inclusion”.
Paxos: Regulated financial institution and infrastructure provider
Paxos, headquartered in New York, is a regulated company with vast blockchain expertise. It offers institutional-grade products like the Paxos Standard (PAX), its exchange itBit and since last week, the Paxos Crypto Brokerage service. With its services, Paxos is able to to not only offer OTC trading, escrow and custody but furthermore access to the digital asset market. At the same time, Paxos manages underlying regulatory and technological aspects for its clients.
Paxos’ Crypto Brokerage enabled the integration of digital asset trading functionalities for other companies. The service only requires a simple application programming interface integration.
The potential partnership with PayPal is one of many new business alliances Paxos has been committing to. Earlier this month, the company announced its partnership with Revolut. Through it, the neobank wants to bring digital asset trading to users in the United States. With Revolut’s app they can now buy, sell and hold Bitcoin and Ethereum.
Paxos has proven to be an attractive partner as the company manages all aspects regarding regulation, technical maintenance and liquidity-related aspects. By partnering with Paxos, PayPal has the opportunity to offer digital assets while not having to deal with custody and other regulated areas.
PayPal partnering with Paxos: Digital asset brokerage for trading functionalities
According to several media outlets, PayPal is partnering with Paxos to profit from its digital asset brokerage service. With it, the payment platform wants to offer digital asset trading.
After parting ways with the Libra Association, PayPal has been focusing on unilaterally developing possible solutions to bring mainstream adoption to the digital asset space. In the meantime, the company has continued looking for possible partnerships with digital asset service providers.
Now, it seems PayPal has found a perfect fit with Paxos to continue its efforts towards bringing digital assets towards mainstream access and adoption.
For more news on companies providing access, services and custody in the digital asset market, please visit: https://digital-assets-custody.com/news/