PayPal launched its cryptocurrency services in late 2020, enabling its massive user base of over 400 million accounts to buy, sell, and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash directly within the PayPal app. The move represented one of the largest mainstream on-ramps to cryptocurrency and was widely seen as a major validation moment for digital assets.
In 2023, PayPal launched PYUSD (PayPal USD), a US dollar-denominated stablecoin issued by Paxos Trust Company. PYUSD is backed by dollar deposits, short-term US Treasuries, and cash equivalents, with regular attestations published by a third-party accounting firm. The stablecoin is available on Ethereum and Solana, and PayPal has integrated it across its payments ecosystem for transfers, purchases, and person-to-person payments.
PayPal's subsidiary Venmo also offers crypto trading, bringing cryptocurrency access to its 80 million-plus user base. Venmo users can buy, sell, and hold crypto, as well as use a "Cash Back to Crypto" feature that automatically converts cashback rewards into a cryptocurrency of their choice. The integration of crypto into both PayPal and Venmo has brought digital asset exposure to a consumer audience that largely would not use crypto-native exchanges.
PayPal's crypto strategy centers on making digital currencies practical for everyday commerce rather than positioning them purely as speculative assets. The company allows US users to pay merchants with crypto at checkout, automatically converting holdings to fiat at the point of sale. PayPal operates under state money transmitter licenses and BitLicense in New York for its crypto services.
Key Crypto Products
- Buy, sell, and hold — Crypto trading for PayPal and Venmo users
- PYUSD — PayPal’s regulated US dollar stablecoin issued by Paxos
- Checkout with crypto — Spend crypto at millions of merchants with automatic fiat conversion
- Cash Back to Crypto — Automatic conversion of Venmo cashback rewards into crypto