PayPal reveals it holds $943 million in customer crypto assets. This is a 56% increase from the previous quarter.
The company allows users in select regions to buy, hold, sell and pay using cryptocurrencies. However, PayPal’s balance sheet has no cryptocurrencies other than those belonging to its customers.
PayPal customers increase deposits
Latest Q1 2023 Form 10-Q Customers’ cryptocurrency deposits surged to $943 million as of March 31 from $604 million in the previous quarter, according to an SEC filing by the online payments firm.
The table below shows that Bitcoin is the most popular in terms of current holdings and quarterly percentage growth, jumping 71% to just under $500 million.
The pattern repeated itself, with Ethereum deposits, the second-most-held cryptocurrency, growing by 45%. Meanwhile, ‘Others’, which consists of Bitcoin Cash and Litecoin, saw a +30% increase.
PayPalTechnical, legal and regulatory risks” means that crypto assets are recorded on the books as both liabilities and assets.
Hodor
Last year was a tumultuous year for cryptocurrencies, marked by the CeFi bankruptcy, especially the FTX scandal.
Nevertheless, by the first quarter of 2023, the cryptocurrency market capitalization will grow by 49% from $796 billion on December 31, 2022 to $1,183 billion on March 31, 2023. It shows an increase, suggesting that the market has recovered to some extent.
Without a detailed breakdown of PayPal customer holdings, it is unclear whether the exact percentage of deposits, which increased 56% quarter-on-quarter, is related to higher crypto holdings or higher dollar values over the period. .
However, using the crude measure of a 49% increase in total market capitalization over the quarter, most of the increase could be related to the increasing dollar value of holdings rather than a surge in customer deposits. I have.
The post of a PayPal customer increasing his cryptocurrency deposit to $943 million first appeared on CryptoSlate.
