PayPal has published its annual report for 2022. The balance sheet includes $604 million in cryptocurrency held in custody on behalf of clients.
Generally, assets held in custody on behalf of clients do not appear on the balance sheet. However, at the end of March 2022, the SEC published a staff accounting bulletin that said crypto-assets carry additional risks and hence assets held in custody must be disclosed on the balance sheet. Invariably the same figure will appear as both an asset and a liability.
The PayPal balance comprises $291 million in Bitcoin and $250 million in Ethereum, with the balance made up of other crypto. The total of $604 million represents less than one percent of PayPal’s balance sheet and is down from $690 million at the end of September 2022.
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