Every day, the cryptocurrency industry makes headlines in the financial press. As the business side if the crypto world continues to disrupt the financial technology status quo, even stories that don’t have a direct relationship to bitcoin, ether, or other major tokens often end up having an indirect connection to the growing cryptocurrency payments industry. The bigger the crypto industry becomes, the harder it becomes to follow all of these fascinating developments.
Let’s take a look at three of the biggest recent headlines from the business side of the cryptocurrency industry.
1. PayPal drops PornHub payments, opening the door for crypto. Earlier this week, online payment platform PayPal announced that it would no longer provide payouts to PornHub’s independent content creators. The adult-video website hosts original content using a Patreon-like model, allowing performers to earn money from tips and subscriptions. While the performers and models can still use direct deposit to withdraw their funds, this could open up new risks as many banks won’t knowingly do business with anyone in the adult industry. The primary alternative for direct deposit is privacy-focused cryptocurrency Verge (XVG), which PornHub adopted as a payout option in early 2018. PornHub creators have also begun calling for the company to support payouts in bitcoin, ether, and other popular cryptocurrencies. Given PornHub’s track record of support for their contributors, those crypto-payment options may already be in development.
2. Coinbase expands in the E.U. As part of its ongoing push to expand into the European market, cryptocurrency exchange and brokerage Coinbase is now offering Visa debit card purchasing in 10 new countries. The “Coinbase Card” allows users in Denmark, Hungary, Iceland, Liechtenstein, Norway, Poland, Romania, Bulgaria, Croatia, and Sweden to make purchases using their Coinbase account balances. In addition to major crypto tokens like BTC, ETH, and LTC, Coinbase Card customers can also tie their accounts to wallets of lesser-known tokens like BAT, XLM, XRP, and ZRX.
3. Ledger’s $150 million insurance policy. As the maker of the Nano line of hardware wallets, Ledger is already one of the best-known brands in cryptocurrency storage and security. More recently, Ledger has focused on providing professional-grade options for financial firms and other major investors through their Ledger Vault service. Although not an institutional custodial service like Coinbase’s Custody, Ledger Vault’s secure storage platform is aimed at the same audience of multi-million dollar investors who want all the security they can get. To that end, Ledger has successfully secured a $150 million insurance policy from Arch, a subsidiary of Lloyd’s of London, covering third-party theft of private keys from their Vault data centers.