PayPal, one of the world's largest electronic payment providers established in the United States, announced that it has a large amount of crypto assets.
PayPal said it "protects" $943 million worth of digital assets in its latest report documents submitted to the SEC by the American Securities and Exchange Commission. According to the payment giant's last quarter report of 2022, he had 604 million dollars in crypto money. The 50% increase in value in the liability item in question attracted the attention of crypto experts.
Making a statement on the situation, PayPal officials emphasized that they do not actively use the crypto in their hands.
"We work with third-party organizations to secure and custodians of our clients' crypto assets."
Banks and financial institutions that provide custody services collect the deposits they hold under the heading of "liability" instead of "asset" as per accounting standards. The assets of banks generally consist of loans given.
What's the Cause of the Increase?
Analyzing the increase in cryptocurrencies on the PayPal balance sheet, experts explained the reason for the 50% change with the market. According to experts, the increase in the market value of cryptocurrencies is the biggest reason for the growth in the item.
The payment service provider holds $499 million worth of Bitcoin and $362 million worth of Ethereum.