PayPal Receives Approval to Join Coinbase’s TRUST Network

PayPal, an American multinational financial technology company operating an online payments system, has been added to Coinbase’s Travel Rule Universal Solution Technology (TRUST) network. 

According to the press release shared by Coinbase, being a part of this network will allow PayPal to comply with the Bank Secrecy Act (BSA) rule 31 (also known as the Travel rule). 

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Based on this rule, financial institutions are required to share specific information about customers when they confirm transactions worth more than $1,000 from one financial institution to another. 

Compliance with this rule becomes exceptionally relevant to PayPal. In June, the company expanded its digital asset services. The company enabled customers to send, receive and transfer crypto between PayPal and other exchanges or wallets. The firm launched its crypto services back in October 2020, and until June allowed customers to buy and sell crypto. 

When sharing the announcement on its blog post, Coinbase noted:

The addition of PayPal marks another milestone in TRUST’s journey to become the global, industry-standard solution for Travel Rule compliance.

Coinbase's TRUST network was created by 18 U.S. virtual assets service providers (VASPs) to ensure the safety and transparency of shared sensitive customer information. According to the official TRUST network’s website:

Information is sent directly from one TRUST member to another, through end-to-end encrypted channels. TRUST never centrally stores sensitive customer information where it could be targeted by an attacker or misused by a third party.

Currently, the network has 38 members, including Binance US, Kraken, Gemini, Crypto.com, Robinhood, and many other crypto-related companies. 

To join the TRUST network, the companies must meet anti-money laundering and know-your-customer (KYC) requirements under the supervision of Exiger.

Gile K., Market Sentiment Analyst

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

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