PayPal users with Bitcoin and Ethereum held on the platform can now withdraw their holdings to external wallets.
Image Source : Cryptopotato
This means that PayPal buyers can finally self-custody their coins – a paramount feature for cryptocurrencies.
- “Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges,” said the online payment provider in a statement.
- The external transfers feature is being rolled out to new users today and will be available across the U.S. within two weeks.
- PayPal began allowing users to buy, sell, and hold cryptocurrencies within the platform starting in 2020. These include Bitcoin, Ethereum, Bitcoin Cash, and Litecoin – all top names at the time. Similar services were made available to the UK in September.
- According to PayPal’s Terms and Conditions (updated today), external transfers only require the external wallet’s public address. Identifying information – like that required in Europe when withdrawing to self-custodial wallets – will not be requested.
- Notably, Paypal does not charge its customers for crypto transactions, distinguishing it from the business model of most exchanges.
- PayPal’s upper management has been bullish on crypto-assets for some time. Co-founder Peter Thiel has a particular fondness for Bitcoin, believing himself to have underinvested back in October.
“The intersection between CBDC, stable coins, digital wallets, and enhanced utility of payments through cryptocurrencies is not just fascinating, but I think will redefine a lot of the financial world going forward,” said CEO Dan Schulman in a speech at Axis Tel Aviv in March.