PicPay has launched a crypto exchange in partnership with Paxos

Brazil’s prominent payment app PicPay has decided to venture into the world of cryptocurrency by teaming up with crypto exchange Paxos. With this integration, Paxos will make it easier for users to buy Bitcoin and Ethereum.

PicPay has officially announced via their blog post that the client will be able to buy, sell and also store two major digital assets which are Bitcoin and Ethereum. These transactions will happen directly on the PicPay app.

The rationale behind PicPay’s merchant service program can be traced to crypto’s real-world use cases delivered by virtual assets that include security among many other benefits. PicPay stated,

Blockchain technology, which is behind coins such as Bitcoin and Ethereum, is already being used in the real estate sector, the insurance industry and even the art market, through non-fungible tokens.

The company currently has more than 30 million active users who will have access to buy, sell and store crypto on the application itself.

PicPay’s goal is to lead the crypto market

This new feature has come about with the help of a partnership with the major digital asset company Paxos. The exchange will allow customers to use the Paxos-issued stablecoin USDP backed by US dollars.

Paxos has been one of the largest crypto exchanges that has a reputation for working with the world’s most famous traditional financial firms such as PayPal and also Venmo. Currently, this fintech app has dedicated its resources to building a feature that will help customers pay via cryptocurrency as well.

Bruno Gregory, head of PicPay’s Crypto and Web3 business unit stated,

PicPay is one of the most disruptive players in payments in Brazil and our goal is to lead the growth of the crypto market, by eliminating the complexity still associated with it and expanding information about the technology, so that everyone can benefit from this asset class, technology.

Next plans regarding Stablecoin and the payment function

PicPay has a goal to go further than just venturing into the crypto world as it wants to offer crypto investments to the people of Brazil.

The exchange plans that by the end of this year users will be able to pay with digital assets through the exchange on the app itself and also complete the crypto transfers.

Along with these plans, PicPay also has plans to launch its own stablecoin. It needs to be backed by the Brazilian real using a one-to-one parity that will allow the stablecoin to be available as a payment method that accepts all digital assets here.

The exchange aims to do this so that consumers can directly trade digital assets without having to exchange the assets for fiat money first.

Similarly, PicPay’s system will have to liquidate the cryptocurrency asset for the merchants first before accepting the digital assets. This is to protect the traders from the high volatility and help them store stable assets.

When the Brazilian real-linked stablecoin goes live, it will help with in-app payments or through another wallet. This will help the tourists the most as they will be allowed to buy this token on any exchange using PicPay enabled merchants.