Global payments giant PayPal holds $604 million in Bitcoin (BTC) and other cryptocurrencies by the end of 2022. BTC and ETH have the largest share of PayPal’s crypto holdings, accounting for $291 million and $250 million respectively in asset allocation.
Payment giant holds Bitcoin and 3 altcoins
Global payments giant PayPal holds a significant portion of its financial obligations in cryptocurrencies such as Bitcoin (BTC), which it offers to its customers. Various cryptocurrencies, including PayPal, Bitcoin, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), as of December 31, according to its annual report to the United States Securities and Exchange Commission (SEC) on Feb. It costs a total of 604 million dollars in its units. Crypto news outlet WuBlockchain shared the following on Twitter:
As of December 31, PayPal has a total of $604 million in Bitcoin, Ethereum, Litecoin and Bitcoin Cash for its customers. Among them, Bitcoin is $291 million and Ethereum is $250 million.
As of Dec. 31, PayPal held a combined $604 million in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for its customers. Among them, Bitcoin is $291 million and Ethereum is $250 million. https://t.co/tmSNRoWJ0W
— Wu Blockchain (@WuBlockchain) February 10, 2023
Bitcoin has the largest share of PayPal’s crypto assets, with $291 million in the company’s asset allocation, while holding $250 million in ETH. The remaining $63 million includes the combination of Litecoin and Bitcoin Cash. PayPal’s crypto assets account for 67% of the company’s total financial liabilities, amounting to $902 million as of December 31. According to the reporting, PayPal’s total financial assets exceeded $25 billion.
The company stores cryptocurrencies through a third-party escrow
Payments giant PayPal introduced cryptocurrencies to its platform more than two years ago. Despite this, it did not include a similar breakdown of crypto assets in its previous annual financial report. “Due to the unique risks associated with cryptocurrencies, including technological, legal and regulatory risks, we accept a crypto-asset protection obligation to reflect our obligation to protect crypto-assets held for the benefit of our customers,” PayPal explained in its latest filing.
The company stated in the filing that PayPal stores customers’ cryptocurrencies through a third-party escrow. PayPal emphasized that its contract requires the custodian to separate customer assets and not mix them with proprietary or other assets, adding:
We cannot be sure that these contractual obligations, even if duly fulfilled by the custodian, will be effective in preventing such assets from being treated as part of the custodian’s legacy under bankruptcy or other liquidation law.
As Cryptokoin.com previously reported, PayPal launched its hold-and-sell service for Bitcoin in the United States in November 2020. According to vice president Richard Nash, the company is doing its best to bring all possible blockchain and crypto integrations into its services, including central bank digital currencies.
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