Crypto On LYO: The Blend — PayPal Customers’ Crypto Holdings Near $1 Billion, Canada to Pursue Digital Dollar Conversation, Xapo Bank Expands its Stablecoin Payment Rails
What happened in the crypto world in the last week? Let’s see some interesting news together!
PayPal Customers’ Crypto Holdings Near $1 Billion
Electronic payments giant PayPal has disclosed it’s “safeguarding” nearly $1 billion in crypto assets despite being a relatively new player in the digital assets market.
A filing with the U.S. Securities and Exchange Commission PayPay revealed it is safeguarding $943 million in cryptocurrency. The bulk of the crypto being safeguarded is made up of $499 million in bitcoin and $362 million in ether, the statement said.
The reported amount, dated for the period ending March 31, was an increase of $339 million when compared to the previous period which ended at the end of 2022. The increase is likely partly attributed to the price of bitcoin and ether rising in recent months.
It appears the payments company, which owns Venmo, does not actually hold the crypto assets, but instead relies on outside custodial service providers.
PayPal said it engages “third parties … to provide certain custodial services” including “securing” its “customers’ crypto assets.” It also added, in its statement that, PayPal’s “third-party custodian holds the crypto assets in a custodial account in PayPal’s name for the benefit of PayPal’s customers.”
Canada to Pursue Digital Dollar Conversation
Canada is the latest country to start the central bank digital currency conversation.
The Bank of Canada is asking for public feedback on a digital dollar.
According to a press release from the bank, Canadians have until June 19 to weigh in on how a digital dollar would be used, what security features should be implemented and concerns that citizens may have around the issuance of a CBDC.
“It’s also possible that private cryptocurrencies or central bank digital currencies issued by other countries could become widely used in Canada in the future,” the press release states.
The Bank of Canada said the aim of the digital dollar would be to “complement cash, not replace it.”
While the bank does not see a need for a CBDC “right now,” it acknowledged that Canada may need to implement one in the future, so the bank — in actions similar to other countries’ financial institutions — wants to “get ready.”
Xapo Bank Expands its Stablecoin Payment Rails
Xapo Bank, a fully licensed private bank that combines traditional banking with access to Bitcoin and stablecoins, has become the first bank in the world to integrate Tether (USDT) payment rails.
Beginning with a phased roll out, the payment rails will be fully available to all members by the end of the month. Building on its existing USDC rails that were launched in March, the bank is now enabling members to leverage the world’s most widely adopted stablecoin for payments as an alternative to time-consuming and costly SWIFT rails.
With a market cap of $82 billion USD, USDT is the world’s most used stablecoin, and one of the most traded cryptocurrencies by volume, having pioneered the digital dollar concept. It empowers growing ventures and innovation throughout the blockchain space, providing a quicker and more efficient way for millions of people across the globe to send and receive money for remittances and other payments.
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