Increased by approximately 46 billion yen from the previous quarter
PayPal, a major US remittance company, reported its business results for the first quarter of 2023 (1Q: January to March) on the 8th. He said that he has about 127.6 billion yen ($943 million) of crypto assets (virtual currency) in custody.
According to documents filed with the U.S. Securities and Exchange Commission (SEC), the main portion of the virtual currency held by PayPal is about ¥67.5 billion ($499 million) of Bitcoin (BTC) and about 49 billion yen ($362 million) Ethereum (ETH) is mentioned.
The amount of $943 million was an increase of approximately ¥45.9 billion ($339 million) from the fourth quarter (October to December) of 2022. This is likely due in part to the rising prices of Bitcoin and Ethereum in recent months.
PayPal does not directly hold the virtual currency, but outsources the management to an external custody service provider. “A third-party custody company holds cryptocurrencies for PayPal customers in PayPal accounts,” the company said.
What is custody
A term widely used for assets other than virtual currency. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian.
Expansion of cryptocurrency wallet services
PayPal President and CEO Dan Shulman commented:
The company is off to a good start in 2023, delivering a stronger than expected performance in the first quarter.
Our ongoing efforts to improve the user experience of our popular checkout and digital wallets are beginning to bear fruit.
PayPal is in the process of expanding its digital wallet service. In June 2010, we enabled the function to deposit and withdraw four types of Bitcoin, Ethereum, Litecoin (LTC), and Bitcoin Cash (BCH) between PayPal accounts and external virtual currency wallets. there is
Also, in December, we announced a partnership with “MetaMask”. It enabled MetaMask users to purchase virtual currency from the wallet app.
In April, it announced a plan to provide a virtual currency remittance function on its affiliated app, Venmo. Venmo users will be able to send cryptocurrencies to friends and family, as well as send money to and from external wallets and cryptocurrency exchanges.
connection: PayPal affiliated application Venmo introduces virtual currency remittance function
PayPal’s overall business net revenue was about 947 billion yen ($7 billion), up 9% year-on-year, and adjusted earnings per share rose 33% to $1.17, beating analysts’ consensus expectations.
But payment services are growing at a slower rate, which some believe may be due to PayPal coming under competitive pressure from companies like Apple Pay, Shopify and Amazon.
Regarding virtual currency, Apple Pay has announced a function for developers that enables payments with the stablecoin “USD coin (USDC)” by the US company Circle. Ethereum’s mainstream wallet, MetaMask, has also made it possible to buy cryptocurrencies using Apple Pay.
In addition, Apple just announced in April that it would provide a savings account service with an annual yield of 4.15% (bank 1.54%) to “Apple Card” users.
connection: US circle company enables USDC payment with Apple Pay
connection: Supports Web3.0 wallet MetaMask and Apple Pay