Digital payments giant PayPal has joined the Travel Rule Universal Solution Technology (TRUST) network, joining a number of other prominent crypto companies that have taken steps to conform with digital asset travel restrictions.
TRUST Network Welcomes PayPal
According to a statement issued by Coinbase on August 22, one of the world’s most popular online payment processors, PayPal, has joined the Travel Rule Universal Solution Technology (TRUST) network.
This news comes two months after the payments giant launched a technology in June of this year that allowed users to move, send, and receive virtual currencies between PayPal and other wallets and exchanges. Prior to then, customers could only purchase and sell cryptocurrency inside the confines of PayPal, after the company’s first entry into the industry in October of 2020.
Coinbase said in its statement that the incorporation of PayPal is another landmark in the progression of TRUST toward its goal of being the worldwide, industry-standard solution for Travel Rule compliance. The principle of the “travel rule” is the primary emphasis of the Travel Rule Universal Solution Technology (TRUST) network, as the name of the network implies.
When the amounts of money being moved to surpass a particular threshold, it mandates that financial companies must disclose certain information about their customers. Alongside Coinbase, a number of the most prominent cryptocurrency exchanges, including Binance.US, Crypto.com, Gemini, and Kraken, are participants in the TRUST project.
Other companies that are a part of the network include the stock and cryptocurrency trading software Robinhood, the company that issues USDC, Circle, the investment manager Fidelity Digital, and the cryptocurrency lender Nexos. It is possible that PayPal’s move to join Coinbase’s network will assist it in this regard because of the rising number of cryptocurrency capabilities it offers. These features imply that PayPal must comply with rules to a greater extent.