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PayPal disclosed it holds $943 million in customers&#8217; crypto assets, up 56% from the previous quarter.
The company enables users in some regions to buy, hold, sell, and pay for purchases using cryptocurrency. However, PayPal doesn&#8217;t have any cryptocurrencies on its balance sheet other than those belonging to its customers.
<h2 id="paypal-customers-up-their-deposits">PayPal customers up their deposits</h2>
In its latest Q1 2023 <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001633917/195d9afa-779f-4932-b227-90f0a170923e.pdf">Form 10-Q</a> SEC filing, the online payments firm revealed that customers&#8217; crypto deposits jumped from $604 million in the prior quarter to $943 million as of March 31.
The table below shows Bitcoin was the most popular in terms of current holdings and quarter-over-quarter percentage increase &#8211; spiking 71% to just short of half a billion dollars.
The pattern repeated, with the second-most held cryptocurrency, Ethereum seeing a 45% increase in deposits. While &#8220;Other,&#8221; consisting of Bitcoin Cash and Litecoin, saw gains of plus 30%.
<figure id="attachment_323800" aria-describedby="caption-attachment-323800" style="width: 968px" class="wp-caption aligncenter"><img class="wp-image-323800 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/Capture-3.png" alt="PayPal customers' crypto assets" width="968" height="152" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Capture-3.png 968w, https://cryptoslate.com/wp-content/uploads/2023/05/Capture-3-300x47.png 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Capture-3-768x121.png 768w" sizes="(max-width: 968px) 100vw, 968px" /><figcaption id="caption-attachment-323800" class="wp-caption-text">Source: <a href="https://investor.pypl.com/financials/sec-filings/default.aspx">investor.pypl.com</a></figcaption></figure>
PayPal stated that the risks of accounting for cryptocurrency, including &#8220;technological, legal, and regulatory risks,&#8221; meant crypto assets are recorded as both a liability and an asset on their books.
<h2 id="hodl">Hodl</h2>
Last year was a tumultuous one for cryptocurrency, characterized by CeFi bankruptcies, particularly the <a href="https://cryptoslate.com/?s=ftx">FTX scandal</a>.
Nonetheless, by the first quarter of 2023, the total crypto market cap saw a significant increase of 49%, rising from $796 billion on December 31st, 2022, to $1,183 billion on March 31st, 2023 &#8211; suggesting the market has recovered to a degree.
Without a detailed breakdown of PayPal customers&#8217; holdings, it is unclear precisely how much of the 56% quarter-over-quarter increase in deposits relates to increased crypto holdings or the increase in dollar value over that period.
However, using the crude measure of a 49% increase in total market cap between quarters, it is probable that the majority of the increase relates to an increase in the dollar value of holdings &#8211; rather than a jump in customers&#8217; deposits.
The post <a rel="nofollow" href="https://cryptoslate.com/paypal-customers-increase-crypto-deposits-to-943m/">PayPal customers increase crypto deposits to $943M</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

PayPal customers increase crypto deposits to $943M

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