PAYPAL ACCOUNTS CAN NOW BE USED ON COINBASE. PayPal announced it is allowing customers to link their PayPal account to Coinbase, making it easy for them to utilize PayPal to buy cryptocurrencies and other blockchain tokens and assets.
Coinbase users will have an option to link a PayPal account as a method of payment for cryptos on the exchange. There will be a purchase limit of $25,000 a day of cryptos purchased via PayPal accounts.
PayPal currently has a user base of more than 377 million, and its new integration with Coinbase is expected to draw many people who’ve been watching cryptos from the sidelines into utilizing them.
Earlier this month, PayPal made news announcing that its peer-to-peer (P2P) payment app Venmo would include crypto functionality. Venmo users can already buy, sell, and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, and users can convert their digital currency into fiat to complete transactions at checkout.
In reporting on the news, the payments industry website pymts.com also noted that Social Finance has begun allowing customers to redeem crypto-delegated rewards earned through their app. Rewards can be redeemed in Bitcoin or Ethereum, with 2 percent cash back rewards deployed.
Pymts.com summed up the news by positing: “Wallets, exchanges, rewards... bit by bit, might we be moving toward cryptos’ critical mass?”
MOVERS OF THE WEEK. Major cryptos in general recovered off lows the week prior. Ethereum climbed more than most and was flirting with $3,000 by the weekend.
Earlier news that the European Investment Bank (the EU’s lending institution) issued its first-ever blockchain-based bond, likely boosted Ether. Issued Wednesday, the bond is worth €100 million. Underwriter money is being represented as “CBDC” (central bank digital currency) on the Ethereum public blockchain. The bond is set to mature in April 2023.
The development has been hailed by some as a crypto milestone. Improved market transparency, reduced costs from intermediaries, and quicker settlement speed were all cited by EIB vice president Mourinho Félix as reasons for the digital bond initiative. “Digital bonds will play a role in giving the Bank a quicker and more streamlined access to alternative sources of finance to boost finance for projects across the globe.”
Ripple (XRP) Caught A Wave
Ripple, currently the world’s fourth-largest cryptocurrency, saw $233 million in institutional investment inflows this past week. It has been one of the best-performing cryptos in April. According to CoinShares, the global digital assets under management reached $64 billion for the first time.
News that Ripple Labs might be close to settling a suit brought by the Security Exchange Commission (SEC) figured into last week’s action. In December 2020, the SEC alleged Ripple was selling unregistered securities and argued that Ripple should be classed as a security instead of a commodity.
But Ripple has maintained that XRP is a virtual coin used as a medium of exchange for international and domestic transactions. Ripple further added that XRP is an asset that is perfect for payment processing because it’s quick and scalable.
According to wiki, Ripple was designed to facilitate “secure, instantly and nearly free global financial transactions of any size with no chargebacks.”
Ripple lost a place on the Coinbase exchange as a result of the SEC suit. But news of a possible IPO that might follow a settlement has buoyed the blockchain project.
BITCOIN WHALES MOVING OFF EXCHANGES. Holders of large amounts of Bitcoin have made large moves in March and April, according to Whale Alert, a blockchain tracking and analytics firm.
On 29 April, one so-called “Bitcoin Whale” took 3,671 BTC off the Coinbase crypto exchange, which represents an estimated $194 million in current value.
Earlier April moves from exchanges into more privately-controlled digital wallets have been reported by industry sites. And nearly $1 billion worth of Bitcoin left Coinbase within 24 hours in late March.
Large BTC wallet addresses accumulated nearly 90,000 coins during the first three weeks of April, according to crypto analytics platform Santiment.
Industry observers say the latest moves might be tied to increased institutional adoption. For example, early last week, Nexon, Japan’s top gaming firm, purchased 1,717 BTC for approximately $100 million.
According to MicroStrategy, Nexon is holding nearly $5 billion worth of Bitcoin in total.