Furthermore, the app lets users gain up to 4.1% rewards on their holdings of the U.S. dollar-pegged stablecoin, Global Dollar (USDG), issued by Paxos. It also offers up to 10% staking rewards on other digital assets, as stated in a company press release.

The launch of Krak aligns with Kraken’s ongoing expansion strategy. The company is diversifying its asset portfolio beyond cryptocurrencies as it gears up for an IPO. Earlier this year, the company revealed its plans to initiate tokenized stock trading for clients outside the U.S. and acquired U.S. retail futures platform NinjaTrader for $1.5 billion.

Kraken’s latest app is expected to incorporate unique features like a cryptocurrency credit line, enabling users to loan against their digital asset holdings. Users can also look forward to physical and virtual Krak cards and “Kraktags,” a user-friendly system akin to Ethereum Name Service (ENS) domain names, which replaces complicated blockchain addresses to simplify transactions.

According to a statement by Kraken co-CEO Arjun Sethi, Krak is built on “permissionless infrastructure” with public blockchains settling transactions globally in real time. The absence of intermediaries ensures “faster settlement, lower fees, and more access.”

Exchange fees from users swapping one asset or currency for another are anticipated to be Krak’s primary revenue stream. The app supports over 300 crypto and fiat currencies.

Krak positions itself as a cryptocurrency-focused alternative to payment apps like Venmo and PayPal, which have integrated crypto services in recent years. Notably, PayPal launched a stablecoin, PYUSD, in 2023 and Venmo introduced crypto trading features in 2021, one year after PayPal did the same. Both companies have integrated ENS for streamlined crypto transactions.

As for additional information, The Block has reached out to Kraken for further comments.

Disclaimer: This article is for informational purposes only. It is not intended as legal, tax, investment, financial, or other advice.

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This initiative is a collaborative effort between Coinbase and PayPal designed to boost the adoption of PayPal’s stablecoin, known as PYUSD, which was launched in 2023. PayPal notes that the integration with Coinbase will enable merchants on its platform to settle directly in PYUSD, bypassing traditional finance systems.

Stablecoins, which are cryptocurrencies designed to retain a stable value (typically pegged 1:1 to the dollar), are frequently used by crypto traders to transfer funds among different tokens. Their usage has seen a significant surge in recent years, with supporters like PayPal asserting their potential for instant payments.

“The synergy of connecting PayPal and Coinbase’s consumer bases, introducing our merchants and Coinbase’s institutional access, creates an incredibly potent combination,” stated Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto, and digital currencies.

The two companies are also planning future collaborations to bolster the use of stablecoins for payments and explore potential applications for PYUSD in decentralized finance platforms, which allow transactions directly on a blockchain network without intermediaries.

“This alliance is all about propelling the future of global payments, mainstreaming stablecoins, and advancing this technology,” expressed Lauren Abendschein, global head of institutional sales at Coinbase. The only other stablecoin for which Coinbase has offered zero-fee transactions is Circle’s stablecoin, USDC, the second-largest stablecoin in terms of market capitalization.

The partnership between Coinbase and PayPal unfolds as the U.S. Congress seems poised to pass a bill establishing regulations for stablecoins for the first time. Both the House of Representatives and the Senate have forwarded bills to regulate stablecoins, with the White House expressing a desire for a final bill to be passed by August. President Donald Trump, who received significant funding from the crypto industry during his campaign, has aimed to extensively revise U.S. cryptocurrency policies since taking office.

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PayPal’s recent introduction of the PYUSD stablecoin has stirred a whirlwind of debate within the cryptocurrency community, primarily centered around the coin’s centralization. The ability of PayPal to halt stablecoin transfers and freeze user addresses has been a significant point of contention. Voices from the crypto realm have taken to platforms like X (previously known as Twitter) to shed light on these potentially problematic aspects.

Altcoin Daily, a prominent crypto influencer, released a video on YouTube, emphasizing the issues associated with the dollar-tied PYUSD stablecoin. This discussion has rekindled the age-old argument about the extent of centralization in crypto assets, which seemingly contradicts the foundational decentralized ethos of cryptocurrencies.

Upon examining the underlying smart contract of PYUSD, crypto specialists discovered that the stablecoin was crafted using an “exceptionally outdated” version of Solidity, a programming language predominantly associated with Ethereum, the globe’s second-largest blockchain. Specifically, PYUSD utilizes version 0.4.24, which not only proves costly for the end-user but also doesn’t align with contemporary industry standards.

The Power Dynamics of PYUSD

Further amplifying the centralization apprehensions are PayPal’s capabilities to suspend all transactions, immobilize addresses and funds, and even arbitrarily augment the stablecoin’s overall supply. Discussions on X have highlighted the potential misuse of this authority by PayPal, drawing parallels to instances where the company proposed a hefty $2500 penalty for users allegedly disseminating false information online.

However, it’s essential to note that such centralization issues aren’t exclusive to PYUSD. Established stablecoins like Tether USD (USDT) and USD Coin (USDC) have faced similar concerns in the past.

The Silver Lining: PYUSD’s Potential Impact on Crypto Adoption

Despite the centralization debates, a segment of the crypto community remains optimistic about PYUSD’s potential influence on the industry. Erik Voorhees, a renowned crypto influencer, posits that the concerns associated with PYUSD are also applicable to existing stablecoins.

Many enthusiasts believe that PYUSD’s association with PayPal, a platform boasting a staggering 430 million global users, could significantly accelerate cryptocurrency adoption. Some even suggest that PYUSD might serve as a gateway for crypto novices, eventually guiding them towards the expansive world of DeFi.

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PayPal, a global leader in online payments, has taken a significant leap into the cryptocurrency domain by launching its very own U.S. dollar-pegged stablecoin named PayPal USD (PY-USD). This digital currency is backed by U.S. dollar deposits, short-term U.S. Treasurys, and other cash equivalents, ensuring its stability and trustworthiness.

The introduction of PayPal USD is a testament to the company’s commitment to bridging the gap between traditional fiat currencies and the dynamic world of digital assets. This stablecoin is redeemable on a one-for-one basis for U.S. dollars and is issued in collaboration with Paxos Trust Company. PayPal’s move is not just about introducing a new stablecoin; it’s about enhancing the user experience. Eligible PayPal customers will have the flexibility to transfer PY-USD between PayPal and compatible external wallets, make person-to-person payments, fund purchases at checkout, and even convert between PayPal’s supported cryptocurrencies and PY-USD.

Dan Schulman, the President and CEO of PayPal, emphasized the importance of this initiative, stating, “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.”

Transparency and Trust: The Cornerstones of PayPal USD

In the ever-evolving cryptocurrency landscape, transparency and trust are paramount. Recognizing this, PayPal has ensured that its stablecoin stands out in these aspects. Starting in September 2023, Paxos Trust Company will release a public monthly Reserve Report for PayPal USD, detailing the instruments that make up the reserves. This move is complemented by the publication of third-party attestations of the value of PayPal USD reserve assets, further bolstering the coin’s credibility.

PayPal USD is not just another stablecoin; it’s a symbol of PayPal’s commitment to user trust. The coin is an ERC-20 token issued on the Ethereum blockchain, ensuring compatibility with a vast ecosystem of developers, wallets, and Web3 applications. Paxos Trust Company, the issuer of PayPal USD, operates under the regulatory oversight of the New York State Department of Financial Services, adding another layer of trust to the coin.

PayPal’s Vision: Educating and Empowering Users

Beyond introducing a stablecoin, PayPal is on a mission to educate its users about the world of digital currencies. The company offers a plethora of resources to familiarize users with the intricacies of cryptocurrencies, stablecoins, and even central bank digital currencies. This educational push comes after the platform began offering cryptocurrency withdrawals and deposits, responding to user demand for enhanced crypto functionalities.

PayPal’s foray into the stablecoin domain is not just a business move; it’s a step towards a future where digital currencies are as commonplace as traditional ones. With the launch of PayPal USD, the company is poised to play a pivotal role in shaping this future.

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Three new trademark applications were recently submitted by Paypal, Inc. to the United States Patent and Trademark Office (USPTO).

Payment processing service Paypal has applied to trademark its name and distinctive “overlapping Ps” logo. In their promotional materials, the apps state their intentions to facilitate the buying and selling of blockchain + digital assets, crypto + digital + virtual currencies, and more.

Among the goods and services protected by the trademark are “downloadable software for sending, receiving, accepting, buying, selling, storing, transmitting, trading, and exchanging digital currency, virtual currency, cryptocurrency, stablecoins, digital and blockchain assets, digitized assets, digital tokens, crypto tokens, and utility tokens,” as stated in one of the trademark applications.

Bitcoin (BTC), Ether (ETH), Litecoin Cash (LTC), and Bitcoin Cash (BCH) are the four cryptocurrencies supported by Paypal’s cryptocurrency platform for users in the United States and U.S. territories (except Hawaii). The cryptocurrency transfer feature was just launched by the payment service, enabling customers to send their funds to other wallets and exchanges. PayPal’s revised terms of service permitted the corporation to charge users $2,500 for disseminating disinformation, which sparked a storm earlier this month on social media. In the end, the business stated that the incident was a misunderstanding.

In addition, Western Union has submitted trademark applications for cryptocurrency-related services.
According to Kondoudis’s Tuesday report, rival financial services provider Western Union submitted three trademark applications on the same day as Paypal.

Western Union has applied for trademark protection in three different classes, alleging that their products will be used in the following industries: banking, insurance, commodities, cryptocurrencies, and token issuance. …and a whole lot more besides.

More and more businesses are submitting trademark applications to the USPTO for crypto services. Formula One has just trademarked the letter combination “F1” for use on a wide variety of crypto goods. Ford, too, was busy last month, submitting 19 trademark applications. Two were submitted by online marketplace giant Ebay in June, five by Facebook owner Meta in May, and fifteen by payment processing giant Mastercard in April, all for trademarks on similar products.

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PayPal Now Allows Crypto Transfers To Off-Site Wallets 

For years, bitcoin has been hailed as a technology that would replace centralized payment services. It would cut the costs of transactions by eliminating the middlemen.

But there’s been a flurry of activity among these traditional services. They want to explore more ways to integrate cryptocurrency into their toolkits.

Today, PayPal confirmed that users can now move their crypto holdings to external wallets and hardware devices. “Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges,” the blog post said.

The ability to transfer crypto will be available to select users from today. Also, it will be open for all eligible U.S. customers in the next week or so.

PayPal Gradually Expands Crypto Offerings

For a multinational company, PayPal has waded pretty deep into the crypto waters. In October 2020, it started letting users buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The San Jose, California-based firm then extended this service to its Venmo subsidiary. They are also launching a “Checkout with Crypto” feature for customers to pay merchants with the assets.

The news at the time sparked a bull run in the crypto markets. Even many are believing that it was a major step in the mainstream acceptance and adoption of the nascent asset class. However, not all crypto lovers were in favor of PayPal’s move. The company’s service doesn’t allow crypto to be transferrable to other off-site wallets, meaning coins would stay in your account until you were ready to sell.

The fact that customers can now transfer their crypto to external destinations is momentous because the platform is used by hundreds of millions of people around the globe to move funds.

Despite introducing more crypto features, PayPal doesn’t seem ready to join the likes of publicly-traded companies

Read More: Buying Bitcoin through PayPal!

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Venmo says their “Cash Back to Crypto” feature is live and credit card users can now spend their cashback rewards to buy digital assets available on the platform. Currently, Venmo provides support for Bitcoin, Ethereum, Litecoin and Bitcoin Cash. 

In his statement to the press, Darrell Esch, senior vice president and general manager of Venmo said: “The Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo.”

Venmo is a PayPal owned payment services provider and it has already acquired over 70 million active customers. It is also a pioneer in providing support for digital assets.

The company is already planning to extend support to other cryptocurrencies and add more advanced features for users. In 2021, Venmo has reported a 183% growth in the number of users on the platform.  

The post Venmo Users Can Now Convert Their Cashback To Crypto appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Paypal has already been very active in launching crypto-specific products. It has integrated crypto payments support on its payment app and is planning to allow crypto trading in the neighbouring UK. PayPal had earlier also launched Venmo which is a crypto payment platform. In a recent update, PayPal had also confirmed adding additional features including launching a super app wallet. 

According to local news outlets, PayPal is taking job applications for crypto-related posts and skills. However, they are currently focussing mainly on hiring employees for business development, anti-money laundering and compliance-related responsibilities. 

The number of people investing and using cryptocurrencies in Ireland and the UK has risen sharply. Many PayPal users are also active crypto investors and traders. As such PayPal is strategically offering them services customizing their products according to the localized requirements. 

As cryptocurrencies are becoming increasingly popular, top payment services providers (PSPs) don’t want to be left behind. Even payment processing giants like Visa and Master have been creating crypto-specific products for their users. Last month, Visa reported $1 billion worth of crypto transactions using their crypto card.

The post PayPal To Target Crypto-savvy Customers In Ireland And UK appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

PayPal CEO Dan Schulman said that the product has already been developed and will soon be launched to the US customers in the coming months. He said that the preliminary version of the new wallet app was “code complete.” Schulman was updating investors about the Q2 financial progress. 

The new wallet app is expected to provide users with more advanced features and functionalities. PayPal is moving fast to not get left behind – other payment services providers are already launching their dedicated crypto-related products. In his update, PayPal CEO said  that the super app wallets will be “unique, driven by advanced AI and machine learning capabilities.”

The payment service giant reported over 400 million active users as of June 30. Though the year-on-year net profit of the company for the second quarter has taken a hit, they are positive about the growth potential. 

“We’re one of a few payments companies to allow consumers to use cryptocurrency as a funding source,” said the PayPal CEO. “We’re also seeing strong adoption and trading of crypto on Venmo.”

Venmo is a payments company launched by PayPal earlier in April this year. The platform already has over 76 million active user accounts and raked in $58 million in revenue for Q2. Venmo also supports crypto trading.

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According to a report from Forbes, Revolut made a post confirming that they would allow users who purchase bitcoins and other tokens through them to move the acquired tokens away from the platform, something which is restricted if you purchase crypto with PayPal or Robinhood.  

The Forbes report reveals that Revolut did publish a post confirming the update which said that users can make bitcoin withdrawals and that they will be adding more currencies to the withdrawal list. However, currently it stands deleted because an official from Revolut confirmed that it got published before the schedule because of an “error.” 

Experts say that with Revolut adding Bitcoin withdrawal, it may attract a significant majority of Robinhood and PaylPal users as the two most popular platforms don’t allow Bitcoin withdrawal. Critics have long been calling crypto purchased on PayPal and Robinhood to be vulnerable as it is not the actual buyer who owns the key. 

When you purchase cryptocurrency through PayPal or Robinhood or similar platforms, though it is you who buy them it is not technically your cryptocurrency. It is the bank/institution who owns the currency and you pay them to hold it for you. It is for this reason, Revolut can really offset the user base of platforms like Robinhood and PayPal. 

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