Crypto
Ledger announces PayPal integration for cryptocurrency purchases
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PayPal is continuing to ramp up its engagement with blockchain technology and cryptocurrencies following the launch of its stablecoin earlier this month. On Wednesday, the online payments giant announced a new partnership with hardware wallet manufacturer Ledger that integrates PayPal into the company’s Ledger Live software.
According to the joint announcement from the two companies, the integration will allow U.S. residents with verified PayPal accounts to buy cryptocurrencies, including Bitcoin and Ether, directly through the Ledger Live platform with no additional verification steps.
“Both PayPal and Ledger are focused on creating secure, seamless, and fast transactions no matter where you are in the world,” said Pascal Gauthier, Chairman & CEO of Ledger. “PayPal has remained at the forefront of the digital payment revolution for more than 20 years, and we are thrilled to come together in this next period of asset innovation with our integration.
Gauthier said that Ledger and PayPal want to “help facilitate a secure and seamless platform for user crypto transactions,” and the integration “provides greater optionality while giving users peace of mind converting dollars into crypto.”
On Feb. 13, Gauthier tweeted that the company had sold 6 million Ledger Nano hardware wallets over the past seven years, calling it “an important milestone in Ledger’s mission to shape the future of Web3 consumer devices.”
PayPal has been making big waves in the blockchain space recently. On Aug. 7, the company shook up the cryptosphere when it announced the launch of its own U.S.-dollar-denominated stablecoin.
“Fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments,” PayPal said. “To address that emerging potential, PayPal announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD).”
The new stablecoin, which is issued by stablecoin provider Paxos Trust Company, is fully backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents, the company said. The firm was issued a BitLicense by the New York State Department of Financial Services (NYDFS) in June, which enabled them to issue the stablecoin in partnership with Paxos.
The stablecoin can be used to send person-to-person payments, fund purchases, convert any of PayPal’s supported cryptocurrencies to and from PYUSD, and users can transfer the stablecoin between PayPal and compatible external wallets.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” said Dan Schulman, president and CEO of PayPal. “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
PayPal first began offering access to cryptocurrencies on Oct. 21, 2020, allowing users to buy, hold, and sell Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). In March 2021, the company expanded its cryptocurrency offerings to include Checkout with Crypto, which allows users to pay for goods and services with their cryptocurrency holdings at select merchants.
In June 2022, PayPal further expanded its cryptocurrency offerings by allowing users to transfer, send, and receive cryptocurrency between PayPal and other wallets and exchanges. As of August, PayPal users in the U.S., the U.K., Canada, Australia, and Singapore can buy, sell, hold, transfer, send, and receive the four supported tokens.
The company said it plans to expand its cryptocurrency offerings to more countries in the future.
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