This is how much BTC and ETH Paypal owned at the end of 2022

Since the end of 2020, Paypal, the popular online payment service, launched its crypto app enabling users to buy, sell and hold crypto such as bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH) and litecoin (LTC). to hold. At the time, it was still possible to send this crypto from the platform to external wallets, but that changed in June 2022.

Bitcoin and Ethereum at Paypal

Paypal held a total of $604 million in bitcoin, ethereum, bitcoin cash and litecoin for its customers as of December 31, 2022, according to the annual report which was filed with the U.S. on February 10 Securities and Exchange Commission (SEC).

Nearly 90% of this amount was split between the two largest cryptocurrencies by market capitalization: BTC and ETH. Paypal owned $291 million in BTC and $250 million in ETH. The remaining $63 million obviously consists of bitcoin and bitcoin cash, but it was not specifically mentioned what the distribution looked like.

Paypal’s crypto holdings account for 67% of the company’s total financial liabilities, amounting to $902 million as of December 31. Paypal’s total financial assets exceeded $25 billion, according to the filing.

Despite the fact that Paypal introduced crypto to its platform more than two years ago, the company has not included a comparable breakdown of its crypto holdings in an annual financial report in the past. However, since March last year this has been made mandatory by the US regulator.

Crypto at third party custodian

The company also mentions in the filing that it stores customers’ crypto via a third-party custodian. Paypal stressed that it contractually requires the custodian to segregate customer assets from other assets or property.

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It adds the following:

We cannot be certain that these contractual obligations, even if duly performed by the custodian, will be effective in preventing such assets from being treated as part of the custodian’s estate pursuant to bankruptcy or bankruptcy proceedings. other insolvency laws.”

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