PayPal Joins the TRUST Network of Coinbase
The payments titan has joined Coinbase’s Travel Rule Universal Solution Technology (TRUST) network, according to a statement released by Coinbase on August 22.
With the rest of the TRUST network, PayPal will increase compliance with the so-called Travel Rule mandated by the Bank Secrecy Act for U.S. financial institutions. This regulation mandates financial institutions to provide client information for transactions over a certain threshold.
Coinbase’s TRUST network strives to give just the required information while maintaining customer privacy. Through Exiger’s compliance and risk management solution, it will avoid utilising a central repository for user data and protect its members’ credibility.
Despite having just 18 members in February, the TRUST network has expanded rapidly in subsequent months. PayPal’s decision to join TRUST brings the total number of members to 38.
Alongside Coinbase, a number of leading cryptocurrency exchanges, including Binance.US, Crypto.com, Gemini, and Kraken, participate in TRUST. The network also includes the USDC issuer Circle, the investment manager Fidelity Digital, the stock and cryptocurrency trading software Robinhood, and the cryptocurrency lender Nexos.
In October 2020, PayPal began cryptocurrency trading. In June of this summer, the company enabled consumers to withdraw and deposit cryptocurrency for the first time.
Presumably, PayPal’s expanding variety of crypto capabilities requires it to comply with rules to a greater extent, and its move to join Coinbase’s network will assist it in doing so.