PayPal Is Looking to Acquire Crypt Firms Including Bitcoin Custodian BitGo

PayPal Is Looking to Acquire Crypt Firms Including Bitcoin Custodian BitGo

Rumors are spreading that the payment giant PayPal is planning on acquiring cryptocurrency firms. As per sources close to the matter, the firm is currently aiming at purchasing the leading cryptocurrency custodian BitGo. PayPal is exploring the possible cryptocurrency firms’ acquisitions after it announced to launch cryptocurrency trading and services.

PayPal in talks with BitGo

One of the cryptocurrency firms that the global payment firm PayPal is considering to purchase is BitGo a leading institutional digital asset custodian. According to a report from Bloomberg published on October 23, 2020, PayPal is continuously in talks with the Bitcoin custodian on this matter. The sources that are close to this matter have reported that the deal between these two firms is expected to finalize within a few weeks.

As the matter is private, therefore, it has not been revealed how much the payment giant plans to pay for acquiring BitGo. Back in 2018, an amount of over $58 million was raised by BitGo at a valuation of $170 million. However, the sources also said that the negotiations between these two may not reach a final agreement and can “still fall apart”. If it happens, PayPal will then move to other cryptocurrency firms that it is exploring. No official statements have been issued by the representatives of PayPal and BitGo so far regarding this matter.

Founded by the Chief Executive Officer (CEO) Mike Belshe, the digital asset trust company BitGo provides users with a multi-signature Bitcoin (BTC) wallet service. The company is backed by various major investment firms including Galaxy Digital Ventures, Digital Currency Group (DCG), Goldman Sachs Group, DRW, and some others. BitGo focuses on institutional investors and is a great security solution for them. That is the reason it attracts major firms that look into it for acquisition such as PayPal.

PayPal to enable crypto services via a partnership with Paxos Trust Company

This news has come after PayPal launched trading support for Bitcoin and some other famous digital currencies. The firm has said that it will enable cryptocurrency services for users via its partnership with Paxos Trust Company.

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