According to a 10-Q filing with the Securities and Exchange Commission (SEC), online payments giant PayPal held nearly $1 billion in crypto on its balance sheet at the end of Q1 2023.
Customers' Crypto accounts recorded profits
A filing for the quarter-end on March 31, 2023 showed that PayPal currently holds Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) worth $943 million of customers on the balance sheet. All of the crypto assets on the list belong to none other than PayPal customers.
The above figure increased by $339 million compared to the previous quarter, corresponding to an increase of 56%. This is largely in line with Bitcoin's 72% increase during the above period, from $16,547 on December 31 to $28,478 on March 31.
An analysis of the company's current crypto assets showed $499 million worth of BTC, $362 million worth of ETH, and another $82 million in BCH and LTC.
PayPal explained in its 10-Q that the platform allows customers to buy, sell, receive, send and hold the aforementioned cryptocurrencies and use these funds to purchase goods and pay for services.
“We maintain internal records of our customers' crypto assets, including the amount and type of crypto assets each of our customers owns,” PayPal said in the filing.
PayPal also said it will fully protect customers from unauthorized buying or selling of crypto and from illegal transfers of crypto assets up to a value of $50,000 for life.
Crypto support service from PayPal
The payments company allowed customers to withdraw crypto assets to personal wallets in June.
PayPal CEO Dan Schulman said he “has a bullish view on all crypto assets” during a web summit event 3/22 in 2020, after admitting that he personally owned Bitcoin in 2019.
In March 2022, he added that CBDCs, stablecoins, and digital wallets will “redefine a lot of the future financial world.”
PayPal co-founder Peter Thiel has previously shown great respect for Bitcoin's strength, suggesting it could weaken the global strength of the US dollar. However, his VC firm cashed out all of its crypto holdings in 2023 after HODLing for 8 years.
The article PayPal Holds $1 Billion in Crypto on Its Balance Sheet was first published on CryptoPotato.
