PayPal, one of the world’s leading payment system platforms, reportedly had $604 million in cryptocurrency for consumers at the end of 2022.
According to filings with the US Securities and Exchange Commission (SEC), a considerable amount of the company’s financial liabilities are held in digital assets.
PayPal began accepting cryptocurrency on its network two years ago. However, in its most recent annual report, the payment giant did not include any information about its crypto holdings. In contrast, the filing demonstrates the importance of cryptocurrency in what has been a disastrous year, as well as what it could signify in the long run.
According to a recent SEC report, payment processing giant PayPal possessed $604 million in cryptocurrency by the end of 2022. According to the article, that amount was accumulated on December 31st.
Furthermore, it shows that the payment corporation possessed a variety of cryptos, including Bitcoin, Ether, Litecoin, and Bitcoin Cash.
Bitcoin accounted for the lion’s share of the company’s crypto holdings. In the financial report, the world’s most renowned cryptocurrency represented $291 million. Following that, $250 million was held in Ether, with $63 million held in a combination of Litecoin and Bitcoin Cash.
According to the reports, the platform’s crypto assets account for 67% of its overall financial obligations. Per the information obtained from the financial report, PayPal’s overall financial assets surpass $25 billion.
“Due to the unique risks associate with cryptocurrencies, including technological, legal, and regulatory risks, we recognize a crypto asset safeguarding liability to reflect our obligation to safeguard the crypto assets held for the benefit of our customers,” the company wrote in the filing.
Furthermore, customers’ cryptocurrency owned by PayPal is stored with a third party. Assuring the SEC conclusively that the custodian is “contractually obligated” to segregate customer assets and others.
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