PayPal is said to be in talks to acquire a flagship cryptocurrency storage company.
Cryptocurrency announcement on PayPal attracts new rumor
17 hours ago, October 23, 2020By Hadrien Augusto
PayPal crypto © Pixabay / Raphael Silva
Now that PayPal is negotiating its final turn before cryptocurrencies arrive on its platform, rumors around the payment giant are growing. Mostly about acquisitions. Two days after the cryptocurrency buying, selling, and storage formalized, PayPal was presented by internal sources interviewed by Bloomberg as in discussion with BitGo.
In a few weeks, the company specializing in tools and technologies for more security in cryptocurrency exchanges could be acquired by the payment giant.
BitGo works both with industry investors, but also supplies its technologies to well-known brands like Binance, Coinbase, and Nexo. Its last fundraising dates back to 2018, with a funding round of $ 57.5 million for a valuation of 170 million. Investors like Goldman Sachs, Galaxy Digital Ventures, Valor Equity Partners were there.
Its activity - almost central - would seem to please PayPal, which is currently under discussion for a possible acquisition. If the project succeeds, then the company founded in 2013 could be swallowed up by PayPal "in a matter of weeks".
Towards a series of acquisitions
BitGo works in particular on “multisig” crypto-currency portfolio solutions: for companies or in any case professionals wishing to keep digital tokens, BitGo offers solutions with tools where several signatures are required to carry out operations.
One of the other flagship products of the California-based company is offline storage, which is compatible with Bitcoin like other digital currencies.
PayPal would find a strategic advantage in capturing such a supplier. The democratization of cryptocurrencies in business-to-business exchanges would give BitGo technologies their full potential.
That said, the Bloomberg report does not stop at this one acquisition. The giant PayPal, with its 239 billion dollars in capitalizati
on as of October 23, 2020, would explore the possibilities of acquisitions of cryptocurrency companies on a broader horizon.
As a reminder, PayPal will welcome crypto-currencies on its platform in the coming weeks in the United States. Then, coverage will be global at the start of 2021. Users will also be able to use their cryptos to make purchases at the platform's 26 million merchant partners. PayPal will settle these in fiat currency by converting beforehand.