Apparently PayPal You could use Paxos brokerage service to add cryptocurrency trading to your services.
In fact, following the rumor a few weeks ago that PayPal is preparing to provide an integrated service of cryptocurrency trading, another rumor states that this will be provided through Paxos Crypto Brokerage.
A few days ago, Paxos announced the launch of this new service that allows other companies to integrate the purchase, sale, custody and sending of cryptocurrencies within their applications.
It is an API based solution that provides direct and immediate access to the cryptocurrency markets in a fully compatible way.
The first company to choose Paxos Crypto Brokerage was Revolut US, offering its American customers not only the buying and selling, but also the storage of tokens. Since this service is API-based, the application that uses it acts as a user interface, while all the operational features involved in managing cryptocurrency custody physically reside on Paxos servers.
This actually allows app users to own the tokens, even if the service is custodial.
Neither PayPal nor Paxos have denied these rumors, suggesting that they may not be completely inaccurate.
Furthermore, the hypothesis that PayPal will also use a service like Paxos Crypto Brokerage, as Revolut US already does, seems plausible.
In fact, the CEO and co-founder of Paxos, Charles Cascarilla, said:
"The digital asset revolution has started and more and more companies like Revolut see it coming."
In order to offer competitive prices, PayPal must be able to tap into a market with ample liquidity, which to date is still lacking in the cryptocurrency market. Using a service like the one Paxos offers solves this problem.
Finally, both Paxos and PayPal are US companies, which comply with US regulations, and perhaps it is also for this reason that Paxos has been chosen as a partner by Revolut for the US market.
However, it is still unclear which cryptocurrencies will be tradable on PayPal.