PayPal Discloses Nearly $1B of Crypto Assets on Balance Sheet
PayPal disclosed nearly $1 billion in cryptocurrencies on its balance sheet in a 10-Q filing with the SEC.
The company indicated that it holds $943 million worth of customer assets in bitcoin, ether, bitcoin cash and litecoin on its balance sheet.
A 10-Q filing is a quarterly financial performance report mandated by the SEC to disclose financial information.
From the end of last year, the company reported an increase of $339 million in customer crypto assets.
“We maintain the internal recordkeeping of our customers’ crypto assets, including the amount and type of crypto asset owned by each of our customers,” PayPal said in its 10-Q.
The company does not hold cryptocurrencies outside of its customer assets on its balance sheet.
While there’s no regulatory protection for crypto investors in the US yet, PayPal — per its terms and conditions — said that it will protect customers from “the full amount of unauthorized purchase or sale activity,” following cooperation with the company. It will also reimburse customers for “unauthorized transfers” for a lifetime cap of $50,000.
The payments provider has introduced numerous crypto features to its customers in the past few years. It enabled customer transfers to third-party wallets and exchanges in July 2022.
It also recently rolled out crypto transfers on Venmo, the mobile payments services app. This allowed customers to move holdings to external wallets, while also letting users transfer crypto to others through the app.
ConsenSys, in December of last year, integrated a feature allowing users to buy ether via PayPal to fund their wallets.