PayPal to Launch Direct Bitcoin, Ethereum Transfers for U.S. Users

PayPal is rolling out a new feature that will allow U.S. customers to send and receive bitcoin and ethereum directly through its payments network. The update, expected in the coming weeks, will apply to both PayPal and Venmo accounts, enabling transfers between users as well as to external wallets.

Until now, PayPal customers could only buy and hold cryptocurrencies through the app. The new feature lifts that restriction, letting users send bitcoin and ethereum to other accounts or wallets in the same way they transfer cash.

PayPal said crypto transfers between PayPal and Venmo accounts will not carry extra fees. The update will also allow coins to be moved in and out of third-party wallets, giving users the option to send assets to exchanges or keep them in private storage.

PayPal entered the cryptocurrency market in 2020 and added new features over time, including the launch of its U.S. dollar-backed stablecoin, PYUSD, in 2023. The company is now betting that direct transfers of bitcoin and ethereum will drive broader use, particularly among Venmo’s younger customers who already use the app for peer-to-peer payments.

The timing of PayPal’s crypto expansion comes as regulators in Washington intensify scrutiny of digital assets. Federal agencies have brought enforcement actions against several exchanges this year, and lawmakers are still debating how to regulate stablecoins and decentralized finance. By offering transfers inside a platform already covered by banking and payments rules, PayPal is signaling that mainstream firms may provide a more compliant alternative to offshore crypto operators.

The decision also places PayPal in more direct competition with fintech peers such as Coinbase, Cash App, and Robinhood, all of which court retail users with crypto features. Analysts note that PayPal’s global footprint and existing customer base give it an edge, since hundreds of millions of account holders already use its network for everyday payments. For Venmo, which skews younger, the feature could strengthen its role as an entry point to digital assets.

Reaction in markets has been muted so far, with bitcoin and ether prices little changed after the announcement. Still, traders say the longer-term effect could be meaningful if PayPal’s user base begins moving crypto more frequently, increasing liquidity and normalizing tokens as part of payment flows. PayPal shares ticked higher in early trading, reflecting cautious optimism from investors who see digital assets as a way to diversify the company’s revenue sources.

Also Read: PayPal Launches Crypto Checkout for Businesses, Supports Over 100 Tokens