Venmo, a competing payment company under PayPal, has launched four major cryptocurrency trading coins: Bitcoin (BTC), Ether (ETH), Litceoin (LTC), and Bitcoin. Cash (BCH).
Venmo Customer to Trade Crypto on its App
Venmo started trading cryptocurrencies, following in the footsteps of its rival Square’s cash app.
When the payment app Square integrated Bitcoin trading into its mobile platform during the crypto bull market in winter 2017, it made headlines and dollars.
As of Tuesday, more than 70 million Venmo customers will be able to buy, hold and sell cryptocurrencies directly in the Venmo app. The version gives users access to the in-app manual that allows them to better browse the cryptocurrency trading section and encourages them to share their cryptocurrency experience through Venmo feeds.
Venmo users can purchase cryptocurrency for as little as $1 and use funds on their Venmo balance or funds on an associated bank account or debit card to buy and sell assets.
According to the company’s 2020 customer behaviour research, more than 30% of Venmo customers have started buying cryptocurrencies or stocks. Among them, 20% of shoppers started buying during the COVID-19 pandemic. This shows that public health and the accompanying economic crises have accelerated the trend towards digitization and new attempts at financial technology.
Partnership with Paxos Trust Company
A partnership with Paxos Trust Company, a provider of regulated crypto products (such as stablecoins and other services), boosted support for cryptocurrencies on Venmo. PayPal, the owner of Venmo, also holds the strict conditional Bitlicense from the New York State Department of Financial Services. Conditional licensees, such as PayPal, are required to pair off with firms that have already been granted full-blown licenses — as, in this case, has Paxos.
Just under a week ago, Dan Schulman, CEO of PayPal, pointed out developments since the payment giant first launched its crypto product in the US last November. According to Schulman, PayPal is designed to support the use of cryptocurrencies in day-to-day transactions and leverage smart contracts and other broader functions of blockchain technology. He also suggested the company’s vision of using crypto technology to achieve a “more inclusive economy” where “things will be very different from today.”