Payment giant PayPal has become a member of the Travel Rule Universal Solution Technology (TRUST) network headed by crypto exchange platform Coinbase.
As a part of the 38 member networking group, PayPal will assist Coinbase on the compliance of its Travel Rule which requires financial institutions in the US to transfer certain information to other institutions that help investigators with potential money laundering crimes.
PayPal will work on increasing compliance along with other members of the TRUST network. Coinbase states the network aims to disclose customer data under its privacy rules and will avoid using a central store of user data to maintain that its members are trustworthy through risk management solution, Exiger.
The TRUST network is made up of financial institutions and crypto firms alike. Some of its members include the Amber Group, Binance.US, Crypto.com, Prime Trust, and now PayPal.
In a statement released by Coinbase, it shared: “The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance.”
PayPal’s involvement in the Coinbase network also highlights further involvement the payment firm has in the crypto space.
The San Jose-based company revealed in 2020 its plans to offer cryptocurrencies on its site for customers to ‘help demystify some misconceptions customers may have about crypto’.
Its plans were put into motion in 2021 and have increased limits for users to purchase up to $100,000 worth of crypto per week.
Dan Schulman, CEO, PayPal, commented last year on the adoption of cryptocurrencies: “As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet.”