PayPal (NASDAQ:PYPL) has unveiled its newest offering, and the crypto world is rejoicing. The company’s newest press release touches on its decision to introduce certain cryptocurrencies to its online merchant transactions. As a result, blockchain stocks have been gaining today.
The company announced on Tuesday morning that four cryptocurrencies will be accepted payment methods within its services. Among the accepted tokens are big players like Bitcoin (CCC:BTC) and Ethereum (CCC:ETH).
The news is a big deal for those bullish on crypto. Being able to use the tokens on a mainstream transaction platform gives the currencies a legitimacy and ubiquity that they did not have before.
The acceptance of crypto by the masses is a necessary driver for players like Bitcoin to continue their massive growth. Ark Invest manager Cathie Wood had said recently that even a $1 trillion valuation of BTC would be too low as long as things keep heading in the right direction.
Well, news that PayPal will connect 29 million online merchants with the cryptocurrency certainly is a catalyst in the right direction. And although merchants don’t directly receive the coins through the transactions, they will benefit from the increased flexibility in payment method for the customer.
Blockchain Stocks on the Rise After PayPal News
Naturally, Bitcoin has benefitted from big gains today. However, the bigger winners are the blockchain stocks who are elevated by the announcement.
Canaan (NASDAQ:CAN) stock is a big winner today. The company specializes in the manufacturing of Bitcoin mining machines. Obviously, as demand increases in Bitcoin thanks to its new ease of transaction, more will want to jump into mining. CAN stock is up by 19% as a result.
Likewise, blockchain stock Marathon Digital (NASDAQ:MARA) is up 15%, Ebang (NASDAQ:EBON) has gained over 8% and Riot (NASDAQ:RIOT) is up 6%. SOS Limited (NYSE:SOS) is a mining company that would typically be up due to this news, but its newest stock offering has dragged down its valuation today.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.