PayPal moves into cryptocurrency market, allowing US merchants to buy, sell and hold digital assets – PayPal Holdings (NASDAQ:PYPL)

Payment giant Company: PayPal Holdings Inc. PYPL unveiled its plan to extend cryptocurrency services to US business account holders, with the exception of New York State.

What happenedAccording to a press release issued on Tuesday, the latest move would allow U.S. traders to buy, sell and hold cryptocurrencies directly from their trading accounts.

Additionally, merchant account holders will be able to send and receive supported cryptocurrency tokens to and from external blockchain addresses.

However, New York State will be excluded from this service at launch, the press release said.

This initiative is part of PayPal’s ongoing strategy to improve the utility of cryptocurrencies by making them more accessible to millions of merchants across the United States.

See also: Kamala Harris reinforces her stance on cryptocurrencies: The United States will “continue to be dominant in artificial intelligence, quantum computing, blockchain and other emerging technologies”

Jose Fernandez da PonteSenior vice president of PayPal’s cryptocurrency division, said the move was taken in response to growing demands from business owners to access the same services already available to consumers.

Why is it important?PayPal's foray into cryptocurrency services is not new. In August last year, the company launched a stablecoin backed by US dollars, PayPal USD PYUSD/USDwhose objective is to promote the adoption of digital tokens for transactions.

At the time of writing, it was the sixth-largest stablecoin, with a market cap exceeding $700 million. according to CoinMarketCap.

The company already allows customers to buy, sell and hold cryptocurrencies in their online wallets.

Interestingly, earlier this week, By Cathie Wood investment management company Investing in Ark bought $4.5 million worth of PayPal shares. This investment came amid mixed reviews from analysts about the company.

Price actionPayPal shares closed down 1.25% at $77.36 during regular trading on Wednesday, though they rose 0.08% in after-hours trading, according to a report by the Stock Exchange. Data from Benzinga Pro.

Image courtesy of PayPal

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Disclaimer: This content was produced in part with the assistance of Benzinga Neuro and was reviewed and published by Benzinga editors.