PayPal’s custodian of crypto funds, itBit, traded over $2.1 billion worth of Bitcoin, Ethereum, Bitcoin Cash, Litecoin and PAX in May, according to data from analytics tool Nomics. Owned by Paxos, itBit is a crypto exchange that provides liquidity to PayPal, a US company that operates an online payment system and entered the crypto market in October 2020.
Daily trading volumes increase fivefold
The easy-to-integrate APIs and regulatory framework of Paxos allowed PayPal, which currently supports four cryptocurrencies, namely Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), to enter the crypto market to an extent that only a mainstream financial platform can achieve.
The itBit exchange has recently seen significant growth in trading volume, suggesting that the PayPal cryptocurrency platform has high utility among PayPal customers.
It even hit a record of $303 million daily trading volume on May 19, right after BTC started dumping. The crypto exchange reached a previous record of daily trading volume of almost $ 240 million in January this year. Before PayPal, they had reached a maximum of 60 million US dollars.
PayPal provoked different reactions last year when it announced that its customers can buy, sell and hold Bitcoin on its platform. At that time, the company did not offer support to its user base, which only grew in numbers during the pandemic, to transfer the coins to an external wallet, which changed in the meantime.
Transfers to external wallets
Recently, the head of the blockchain and cryptocurrency department at PayPal, Jose Fernandez da Ponte, announced at the Consensus conference that PayPal and its mobile payments subsidiary, Venmo, will add support for transferring Bitcoin from the platforms to third-party wallets.
With more than 3.5 million PayPal users worldwide, the ability to transfer cryptocurrency from their platforms to a third-party wallet has the potential to make cryptocurrencies available to an unprecedented amount of people.