Massive existing user base. Simple interface.
Cannot withdraw to external wallet. No self-custody option.
Custody feature data not yet available.
1 independent party or system must fail before a PayPal holder's bitcoin is at risk.
PayPal's custody insurance is not publicly disclosed.
PayPal uses a single custodian model and scores 45/100 in our independent review, including 15/100 on custody security. One institution can move funds, which is a single point of failure. Safety depends on your priorities; see the full score breakdown above.
PayPal's custody insurance is not publicly disclosed in a form we can verify. Where it exists, custody insurance covers specific named events up to shared limits and does not cover price loss. Confirm coverage in writing before relying on it.
Because PayPal holds custody through a single institution, recovery in a failure would run through that institution's bankruptcy or resolution process and depends on whether assets were segregated and properly titled. This is the concentration risk of single-custodian models.
PayPal does not advertise a dedicated inheritance or beneficiary feature in the data we track. Confirm current options with the provider, since custody inheritance handling changes.