Payments giant, PayPal, has announced its collaboration with crypto wallet provider Ledger, to allow users to purchase cryptocurrency more conveniently and securely. PayPal users in the US will be able to directly purchase major cryptocurrencies, BTC, ETH, BCH and LTC, through their linked PayPal accounts on the Ledger Live app.
Ledger Live has over 1.5 million active users and its partnership with PayPal is intended to promote the seamless and secure adoption of digital assets. Purchases via Ledger Live will be automatically sent to users' Ledger hardware wallets.
The Chairman and CEO of Ledger stated:
We’re combining the uncompromising security of Ledger with PayPal’s leadership in secure payments technology to help facilitate a secure and seamless platform for user crypto transactions.
The news follows PayPal’s launch of the PayPal USD stablecoin and affirms the payment giant’s ongoing commitment to integrate traditional finance with cryptocurrency. While both the PayPal stablecoin and crypto purchases through PayPal's Ledger Live integration are only available to US users at this stage, geographic coverage is expected to be increased in the future.
Separately, PayPal has announced a temporary halt on UK cryptocurrency purchases through PayPal commencing 1 October 2023. In an email to their UK users, the company explained:
We’re taking this measure in response to new rules enacted by the UK Financial Conduct Authority (FCA) that require crypto firms to implement additional steps before customers can purchase crypto.
The company highlighted their commitment to compliance obligations and assured users that the suspension period will give them time to satisfy stringent new FCA requirements relating to crypto promotions before services are resumed. During the suspension period, which is expected to end in early 2024, existing UK users can still hold and liquidate their digital assets at any time.