PayPal

• A blockchain token designed to track the price of PayPal Holdings, Inc. (NASDAQ: PYPL).

• It is not a share. Holding the token does not confer ownership of the company, voting rights, or a direct claim against it.

• It offers fractional, round-the-clock price exposure without opening a foreign brokerage account.

• Founded: 1998

• Headquarters: San Jose, California, United States

• CEO: Enrique Lores (since March 2026)

• Listed on: Nasdaq (PYPL)

• Sector: Digital payments

• PayPal processes digital payments for consumers and merchants, including through Venmo and Braintree.

• It faces intensifying competition in checkout from platform-native payment options.

• Transaction margin trends are the central metric for the business.

• Transaction revenue from branded checkout, Braintree processing and Venmo is the largest line.

• Other value-added services include credit, interest and partner fees.

• It also issues the PYUSD stablecoin.

• You get price exposure to the underlying instrument.

• You do not get shareholder voting rights.

• Dividend or distribution treatment depends on the issuer's structure and is often not passed through.

• You take on issuer and custodian risk in addition to the price risk of the underlying.

Pros:

• It has a very large base of active accounts.

• Venmo monetisation is growing.

• It returns cash through buybacks.

Cons:

• Branded checkout faces competition from platform wallets.

• Braintree processing has low margins.

• A new CEO is resetting strategy.

• Counterparty risk: if the issuer or custodian fails, the backing may not be recoverable.

• Tracking risk: the token price can diverge from the underlying, particularly outside US market hours when the underlying does not trade.

• Liquidity risk: on-chain liquidity is thinner than the underlying market, so spreads can widen sharply.

• Regulatory risk: India does not yet have a settled framework for tokenised equities, and tax treatment remains unclear.

• Price risk specific to the underlying instrument.