PayPal is rumoured to have chosen Paxos (PAX) to facilitate its cryptocurrency services, according to two sources of CoinDesk. Neither PayPal nor Paxos has offered a comment following the story’s publishing.
In June 2020, reports emerged that PayPal would begin offering crypto trading services to its enormous userbase. Currently, PayPal has roughly 325 million active users. Unsurprisingly, the cryptocurrency industry was abuzz when the news broke, as many felt that this would be a huge step forward in terms of adoption.
Details on the specifics of PayPal’s crypto services are scarce, though it has been confirmed that it will be a trading service. The purchase and sale of cryptocurrencies would be executed through an in-built wallet. At the time, the exchanges that were being considered were BitStamp and Coinbase.
It is believed that PayPal will use Paxos’ newly launched brokerage service to facilitate trades. Paxos brokerage service was launched just a few days ago, on July 15, 2020. According to the official press release, it is a “turnkey, easy-to-integrate API-based solution that provides access to the $200 billion cryptocurrency market while managing the underlying regulatory and technological complexity.”
Other platforms have already used the brokerage service, like that of Revolut, which just expanded into the US.
The sources also said that a confirmation could arrive as soon as this week. With the original report saying that PayPal could launch cryptocurrency trading in as soon as 3 months, it is likely that more substantiated news will arrive in the weeks to come.
PayPal seems to be accelerating the pace of its research and development. In early 2020, it began posting open positions related to cryptocurrencies, for chiefly engineering roles. The payments platform also dropped out of the Libra Association in October 2019.