PayPal Held $604 Million In Customer Crypto Asset By The End Of 2022

Key Points:

• As of December 31, PayPal has a total of $604 million in crypto assets for its users.
• According to PayPal’s asset breakdown, Bitcoin accounts for $291 million of the company’s total crypto holdings, while ETH accounts for $250 million.
• The company’s filing states PayPal uses a third-party custodian to keep customers crypto.

Global payment giant PayPal offers its clients cryptocurrencies like Bitcoin and Ether, which make up a sizeable portion of its financial obligations.

According to the US Securities and Exchange Commission annual report, as of December 31, 2022, PayPal owned $604 million in Bitcoin Cash (BCH), Ethereum (ETH), Lite Bitcoin (LTC), and Bitcoin (BTC) for its users.

The two biggest cryptocurrencies by market size, BTC at $291 million and ETH at $250 million, received over 90% of the total. LTC and BCH make up the $63 million that is left behind.

When compared to the $690 million held at the end of September, the amount represents a time when cryptocurrency prices experienced a steep fall following the failure of the exchange FTX.

As of December 31, PayPal’s crypto assets were $902 million, or 67% of the company’s entire financial liabilities. According to the declaration, PayPal’s total financial assets exceeded $25 billion.

However, the payments business has just lately started to reveal particular holdings of various coins in its SEC filings, even though it has been enabling clients to purchase and sell cryptocurrency since October 2020. According to Staff Accounting Bulletin No. 121 (SAB 121), which was released in March of last year, the SEC now requires this level of detail.

“Due to the unique risks associated 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 filing said.

According to the filing, PayPal uses a third-party custodian to keep clients’ cryptocurrency. The company emphasized that it has a legal obligation to the custodian to keep client assets separate from proprietary and other assets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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