On Wednesday, PayPal shocked the crypto industry when it revealed that it would be directly supporting digital assets by adding the ability to purchase and sell Bitcoin, Ethereum, and other altcoins. The announcement also indicated that the firm would be supporting cryptocurrency payments between its merchants and the retail users it supports.
New reports indicate that PayPal’s interest in crypto stretches far beyond it acting as an exchange and payment processor, though.
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PayPal Looks to Acquire Crypto Companies: Reports
Bloomberg reported just minutes ago that PayPal is looking to acquire crypto-asset companies, namely BitGo.
BitGo is one of this space’s biggest custodians, servicing the Wrapped Bitcoin project, along with funds and service providers. It has been invested in by Galaxy Digital, Goldman Sachs, Jump Capital, and other firms in and out of Wall Street.
The Bloomberg report cites “people familiar with the matter” of PayPal’s plans.
The firm acquiring BitGo would likely allow it to provide custodial services to its retail clients, along with potentially more institutional clients that are looking to dabble in digital assets.
The people said that PayPal may seek to acquire other companies if the BitGo talks fall through.
There is currently no knowledge of how much PayPal would spend if it were acquiring the company. But Bloomberg notes that in 2018, the company raised $58.5 million from a number of financiers at a $170 million valuation. Bitcoin has gained further adoption as an institutional asset since that time.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from CoinPriceWatch.com Sources: PayPal Is Looking to Acquire Crypto Companies, Namely BitGo