Will Cryptocurrency Destroy PayPal (PYPL?)

PayPal (PYPL) has a heavy exposure to cryptocurrency. Some data show crypto comprises 67% of PayPal’s liabilities.

PayPal Holdings (PYPL) held $604 million in cryptocurrency on 31 December 2023, CoinTelegraph reports. Bitcoin (BTC) is PayPal’s largest crypto holding. The company had $291 in BTC on 31 December 2023.

Ethereum (ETH) is PayPal’s second largest crypto holding. CoinTelegraph estimates PayPal had $250 million in ETH on 31 December 2023. PayPal had $63 million in Litecoin (LTC) and Bitcoin Cash (BCH). The BTC, ETH, LTC, and BCH holdings are part of PayPal’s enormous bet on Cryptocurrency.

PayPal’s cryptocurrency holdings comprise blockchain assets purchased by customers through its platform, ihodl reports. Interestingly, PayPal’s cryptocurrency purchase volume fell from $690 million on 30 September 2022.

PayPal hopes to support as many digital assets as possible, Vice President Richard Nash says. Nash wants PayPal to support nonfungible tokens (NFT), stablecoins, and central bank digital currencies (CBDCs).

Does Cryptocurrency Threaten PayPal?

Skeptics will wonder if cryptocurrency market volatility can bring PayPal (PYPL) down.