On behalf of its clients, PayPal has $604 million in cryptocurrency.
On behalf of its users, the financial behemoth PayPal held $604 million in several cryptocurrencies as of December 31, 2022, including Bitcoin ($BTC), Ethereum ($ETH), Litecoin ($LTC), and Bitcoin Cash ($BCH).
Bitcoin accounts for the majority of cryptocurrency holdings.
The majority of the cryptocurrency assets, totaling $291 million, are in Bitcoin, according to the firm’s statement. LTC and BCH together own $63 million, whereas ETH holds $250 million.
First-Ever Crypto Breakdown in Filings
Despite debuting its cryptocurrency services in October 2020, this is the first time PayPal has provided a breakdown of its cryptocurrency holdings in its report.
Recognizing the Responsibility for Crypto Asset Protection
In order to assure the responsibility to protect the crypto assets stored for its clients, PayPal has recognized the specific risks connected with cryptocurrencies, such as technological, legal, and regulatory hazards.
Cryptocurrency Assets Kept by Third-Party Custodian
The company stores its digital assets with a third-party custodian, who is obligated by contract to keep client assets apart and make sure they are not mixed up with any other assets or the company’s own. PayPal cautioned that even if the custodian complies with these contractual requirements, there is no guarantee that assets will not be seen as belonging to the custodian’s estate in the event of bankruptcy or insolvency.