PayPal is set to allow U.S. merchants to purchase, hold, and sell cryptocurrency directly through their PayPal business accounts.

PayPal announced this move as part of its strategy to increase cryptocurrency’s role in everyday transactions for millions of businesses in the U.S. At launch, this service will not be available for businesses in New York.

Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold crypto like Bitcoin (BTC) and Ethereum (ETH).  Now, the company is extending these capabilities to business account holders, reflecting increased demand from merchants who want the same access to digital assets as consumers. 

PayPal’s crypto embrace

PayPal business accounts will be able to transfer cryptocurrencies to external wallets, allowing merchants to send and receive digital tokens on blockchain networks.

For those unfamiliar with cryptocurrency, this announcement means that PayPal is making it easier for U.S. merchants and businesses to use digital assets in their operations. Businesses can now handle digital currencies much like traditional currency, with PayPal acting as the bridge between conventional finance and the growing world of cryptocurrency.

In August 2023, PayPal launched its stablecoin, PayPal USD (PYUSD), becoming the first major financial company to do so. PayPal USD debuted on the Ethereum blockchain and is backed by U.S. dollar deposits and short-term Treasuries.

After expanding to Solana, PYUSD’s weekly transaction volume jumped to over $500 million in May, up from $150 million. The total supply of PayPal USD across Solana and Ethereum reached $534 million, with 74% on Ethereum and 25% on Solana.

Alchemy Pay has launched its crypto payment solutions on Telegram through The Open Network.

This addition will allow users of the popular messaging app to make crypto transactions without leaving the platform, making it easier for Telegram’s user base to engage with digital currencies.

The partnership, announced on Alchemy Pay’s X account, is part of the company’s broader mission to bridge the gap between traditional finance and the crypto world.

In other words, Alchemy Pay is simplifying how people send and receive crypto directly through the Telegram app, much like sending a regular message. This new feature streamlines digital currency usage by keeping everything within one platform.

Toncoin (TON), the network’s native cryptocurrency, has surged by over 8% in the last 24 hours, outpacing Bitcoin (BTC).

Alchemy Pay and Telegram’s developments

It has been a busy summer for Alchemy Pay, which recently partnered with Mastercard to improve user verification and prevent identity fraud using advanced machine learning technology. This collaboration enabled Alchemy Pay to identify genuine users and reduce fraud in its payment gateway system.

Alchemy Pay also partnered with Paysafe to attract more crypto users across 130 countries, allowing them to buy crypto using over 40 fiat currencies.

TON, the blockchain originally developed by Telegram, has proven to be a strong foundation for this integration. TON has maintained a growing user base and demonstrated resilience in the competitive crypto market. 

Telegram, and by association, TON, have been in the spotlight this summer. Telegram’s founder, Pavel Durov, was recently arrested on multiple charges and subsequently released under police authority in France.

Crypto corporations have become the dominant force in federal election spending, spending over $119 million to influence the U.S. election outcome. 

According to a report by the non-profit organization Public Citizen, nearly half of all corporate money contributed to this year’s United States elections came from crypto backers, totaling $248 million.

This makes the crypto industry the largest corporate political spender in 2024, with Koch Industries, primarily known for oil and gas, a far second, contributing $28.25 million to support Republican candidates and causes.

According to the report, the massive investment has primarily been funneled into the nonpartisan super PAC Fairshake, which is dedicated to electing pro-crypto candidates and defeating those skeptical of the sector.

One of the report’s general concerns with the spending was that crypto-influenced lawmakers are undermining consumer protections and financial system safeguards.

“Crypto-influenced lawmakers bending over backwards to benefit Big Crypto means weaker protections preventing individual consumers from being defrauded by reckless crypto scams – and softened regulations protecting our financial system from destructive innovations that exploit consumers while enriching insiders.”

Public Citizen report

Unprecedented spending

Over the past three election cycles, crypto corporations have spent $129 million, accounting for 15% of all known corporate contributions since the Supreme Court’s 2010 Citizens United ruling, which allowed unlimited corporate contributions to super PACs. 

During the cycles, 92% of this spending occurred in 2024 alone.

Crypto’s political spending

The report highlighted how spending appears to be paying off in the United States’ political landscape.

According to the report, crypto companies pledged support in the Montana senate race without specifying the candidate. At the same time, Senator Jon Tester voted in favor of pro-crypto legislation despite previous skepticism. 

The House Republicans’ bill, known as the Financial Innovation and Technology for the 21st Century Act, or FIT21, was approved by 71 Democratic House members, defying the Biden administration. If enacted, this legislation is expected to legitimize the crypto industry.

Additionally, politicians such as Donald Trump, J.D. Vance, and members of Kamala Harris’ team have made pro-crypto gestures, indicating a growing impact of the crypto sector on political stances and decision-making.

Fairshake 

Fairshake PAC, the primary beneficiary of this influx of crypto cash, has raised $202.9 million to date, with more than half of its funding—$107.9 million—coming directly from corporations like Coinbase and Ripple (XRP). 

The remainder of Fairshake’s funds have come from billionaire crypto executives and venture capitalists, including the founders of Andreessen Horowitz and the Winklevoss twins.

Warnings as crypto influences the election

The surge in corporate spending is seen as an aggressive move by the crypto industry to push its regulatory agenda to the forefront of the 2024 elections. However, the strategy is not without controversy. 

According to the report, critics argue that the overwhelming influence of crypto money in politics could undermine the public interest in favor of private, profit-driven goals. 

“We’ve already had enough of elected officials looking the other way because influential billionaires and Big Businesses told them to,” the report read. “Regulators and lawmakers should be free to carry out their public interest missions without fear of political attacks from corporate interests.”

The report warned that this trend could increase corporate influence and weaken established electoral norms, further consolidating the power of wealthy interests in the political process.