PayPal selects Paxos as the crypto supplier for its new service

FinTech giant PayPal is planning to roll out crypto trading on its platform. The firm has reportedly chosen Paxos to handle the supply of digital assets for its new service. A report unveiled this news on July 20 citing two people familiar with the matter. Per the publication, this move would see PayPal become one of the most prominent traditional firms to hop on to the crypto bandwagon. In so doing, the company would join other publicly-traded payments providers such as Square and Robinhood, a leading stock brokerage firm.

According to one of the sources, this is a desirous job for New York-based Paxos, which rolled out Paxos Brokerage exchange in the past week, and announced that the Revolut US was its first customer. Despite the news of PayPal’s intention to introduce direct sales breaking in the past month, It remains a mystery as to which crypto coins the firm intends to offer. Paxos declined to comment on this news and PayPal failed to respond to requests of comment by the time of writing.

PayPal decides to play catchup

PayPal’s decision to launch direct crypto sales comes as the crypto arms of traditional FinTech apps continue growing steadily. This is because cryptocurrencies are gradually shifting from being pseudo-assets to become an integral component for FinTech startups and challenger bank apps that seek to build revenue and customers.

For instance, Jack Dorsey-founded Square recently unveiled that its bitcoin trading volume had grown significantly. According to the company, its BTC revenue topped its fiat revenue in Q1 this year. While Square’s cash App raked in £176.6 million in revenue, the firm’s BTC dealings were worth £243.25 million.

According to the firm,

“Bitcoin revenue for the three months ended March 31, 2020 increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.”

Apart from Square, London-based Revolut partnered with Bitstamp in 2017 to begin offering crypto to its users. In February this year, the firm raised £397.7 million in its Series D funding round. This fundraising saw the company’s valuation rise to £4.37 billion.

Paxos brokerage service set to revolutionize crypto

In the past week, Paxos published a blog post regarding the launch of its crypto brokerage service. Per the publication, Paxos Brokerage Service aims to make it easy for businesses to integrate the capabilities of buying, selling, holding, and sending crypto into their applications. According to Paxos CEO, Charles Cascarilla, this brokerage service could be a tipping point for the crypto space. He added that more clients ranging from FinTech apps to banks and brokers were set to integrate the service.