We allow our customers in certain markets to buy, hold, sell, receive, and send certain cryptocurrencies as well as use the proceeds from sales of cryptocurrencies to pay for purchases at checkout. These cryptocurrencies consist of Bitcoin, Ethereum, Bitcoin Cash, and Litecoin (collectively, “our customers’ crypto assets”). We engage third parties, which are licensed trust companies, to provide certain custodial services, including holding our customers’ cryptographic key information, securing our customers’ crypto assets, and protecting them from loss or theft, including indemnification against certain types of losses such as theft. Our third-party custodian holds the crypto assets in a custodial account in PayPal’s name for the benefit of PayPal’s customers. We maintain the internal recordkeeping of our customers’ crypto assets, including the amount and type of crypto asset owned by each of our customers in that custodial account. Given that we currently utilize one third-party custodian, there is concentration risk in the event the custodian is not able to perform in accordance with our agreement.

Due to the unique risks associated with cryptocurrencies, including technological, legal, and regulatory risks, we recognize a crypto asset safeguarding liability to reflect our obligation to safeguard the crypto assets held for the benefit of our customers, which is recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheet. We also recognize a corresponding safeguarding asset which is recorded in prepaid expenses and other current assets on our condensed consolidated balance sheet. The crypto asset safeguarding liability and corresponding safeguarding asset are measured and recorded at fair value on a recurring basis using prices available in the market we determine to be the principal market at the balance sheet date. The corresponding safeguarding asset may be adjusted for loss events (e.g., uninsured losses), as applicable. As of September 30, 2022, the Company has not incurred any safeguarding loss events, and therefore, the crypto asset safeguarding liability and corresponding safeguarding asset were recorded at the same value. The following table summarizes the significant crypto assets we hold for the benefit of our customers and the crypto asset safeguarding liability and corresponding safeguarding asset as of September 30, 2022 (in millions):


	Unrealized Gains on Cash Flow Hedges		Unrealized Losses on Investments		Foreign Currency Translation Adjustment (“CTA”)		Net Investment Hedges CTA Gains		Estimated Tax Benefit		Total
	(In millions)
Beginning balance	$	409	$	(544)	$	(665)	$	180	$	56	$	(564)
Other comprehensive income (loss) before reclassifications	294		(157)		(206)		97		11		39
Less: Amount of gain reclassified from accumulated other comprehensive income (loss) (“AOCI”)	156		—		—		—		—		156
Net current period other comprehensive income (loss)	138		(157)		(206)		97		11		(117)
Ending balance	$	547	$	(701)	$	(871)	$	277	$	67	$	(681)


	Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Losses on Investments		Foreign CTA		Net Investment Hedges CTA Gains		Estimated Tax (Expense) Benefit		Total
	(In millions)
Beginning balance	$	(93)	$	(6)	$	(220)	$	24	$	3	$	(292)
Other comprehensive income (loss) before reclassifications	160		—		(29)		—		(7)		124
Less: Amount of loss reclassified from AOCI	(44)		—		—		—		—		(44)
Net current period other comprehensive income (loss)	204		—		(29)		—		(7)		168
Ending balance	$	111	$	(6)	$	(249)	$	24	$	(4)	$	(124)


	Unrealized Gains on Cash Flow Hedges		Unrealized Losses on Investments		Foreign CTA		Net Investment Hedges CTA Gains		Estimated Tax (Expense) Benefit		Total
	(In millions)
Beginning balance	$	199	$	(87)	$	(270)	$	24	$	(2)	$	(136)
Other comprehensive income (loss) before reclassifications	658		(614)		(601)		253		69		(235)
Less: Amount of gain reclassified from AOCI	310		—		—		—		—		310
Net current period other comprehensive income (loss)	348		(614)		(601)		253		69		(545)
Ending balance	$	547	$	(701)	$	(871)	$	277	$	67	$	(681)


	Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Gains (Losses) on Investments		Foreign CTA		Net Investment Hedges CTA Gains		Estimated Tax (Expense) Benefit		Total
	(In millions)
Beginning balance	$	(323)	$	11	$	(198)	$	24	$	2	$	(484)
Other comprehensive income (loss) before reclassifications	242		(17)		(51)		—		(6)		168
Less: Amount of loss reclassified from AOCI	(192)		—		—		—		—		(192)
Net current period other comprehensive income (loss)	434		(17)		(51)		—		(6)		360
Ending balance	$	111	$	(6)	$	(249)	$	24	$	(4)	$	(124)


Details about AOCI Components	Amount of Gains (Losses) Reclassified from AOCI								Affected Line Item in the Statement of Income (Loss)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions)
Gains (losses) on cash flow hedges—foreign currency exchange contracts	$	156	$	(44)	$	310	$	(192)	Net revenues
Unrealized gains (losses) on investments	—		—		—		—		Other income (expense), net
	156		(44)		310		(192)		Income before income taxes
	—		—		—		—		Income tax expense
Total reclassifications for the period	$	156	$	(44)	$	310	$	(192)	Net income (loss)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions)
Interest income	$	48	$	15	$	90	$	43
Interest expense	(87)		(58)		(215)		(173)
Net gains (losses) on strategic investments	495		173		(163)		336
Other	4		(8)		(49)		(25)
Other income (expense), net	$	460	$	122	$	(337)	$	181