The global payment giant, PayPal, maintains a significant part of its financial liabilities in cryptocurrencies such as Bitcoin (BTC) that it offers to its clients.
As of December 31, PayPal had a total of $604 million in various cryptocurrencies, including Bitcoin, Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), according to the annual report. archived with the United States Securities and Exchange Commission on February 10.
Bitcoin holds the largest share of PayPal’s crypto assets, accounting for $291 million in the company’s asset breakdown, while $250 million is held in ETH. The remaining $63 million includes Litecoin and Bitcoin Cash combined.
The amount of PayPal’s cryptocurrencies represents 67% of the company’s total financial liabilities, which amount to USD 902 million as of December 31. PayPal’s total financial assets amounted to more than $25 billion, according to the filing.
Despite introducing cryptocurrencies to its platform more than two years ago, PayPal did not include a similar breakdown of cryptocurrencies in its portfolio. former annual financial report.
“Due to the unique risks associated with cryptocurrencies, including technological, legal, and regulatory risks, we recognize a responsibility to safeguard crypto assets to reflect our obligation to safeguard crypto assets for the benefit of our customers,” PayPal wrote in the recent filing. .
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PayPal stores customers’ cryptocurrencies through a third-party custodian, the company noted in the filing. PayPal emphasized that it contractually requires the custodian to segregate customer assets and not commingle them with proprietary or other assets, adding:
“We cannot be sure that these contractual obligations, even if duly observed by the custodian, will be effective in preventing such assets from being treated as part of the custodian’s estate under bankruptcy or other insolvency law.”
As previously reported, PayPal debuted its Bitcoin holding and selling service in the United States in November 2020. The company has been doing its best to bring all possible blockchain and crypto integrations to its services, including currencies. digital central bank, according to Vice President Richard Nash.
