PayPal To Acquire Digital Asset Custody Provider Curv
Payments giant PayPal will be acquiring digital asset custody provider Curv as it strengthens its new cryptocurrency services.
Today, digital payments giant PayPal announced the acquisition of Curv, a digital asset security infrastructure and custody company based in Tel Aviv, Israel.
The acquisition of Curv, founded in 2018, should help the company’s security as it allows customers to buy, sell and hold cryptocurrencies directly on the platform, an addition of services announced in October 2020.
“As a pioneer in security infrastructure for digital assets, Curv is proud to be recognized as an innovator and trusted partner to leading financial institutions around the world,” Curv CEO Itay Malinger said in a PayPal announcement. “Now, as the adoption of digital assets accelerates, we feel there’s no better home than PayPal to continue our journey of innovation. We’re excited to join PayPal in expanding the role these assets play in the global economy.”
Prior to the acquisition, PayPal formed a business unit with an express focus on blockchain technology and digital currencies and this unit is where the Curv team will now work. The acquisition points to growing company focus in digital assets, and may help expedite the process of rolling out cryptocurrency integration globally on PayPal.
The acquisition is expected to be complete within the first half of 2021, timing that coincides with PayPal’s stated objective of rolling out its cryptocurrency services to its mobile payment app, Venmo. The exact financial terms of the deal were undisclosed.
While many saw PayPal’s adoption of bitcoin services as a potential major breakthrough in BTC adoption, it was not without caveats. As of right now, customers cannot control their own private keys associated with any bitcoin they purchase through the platform. Absent this key aspect of bitcoin security, users are not gaining exposure to the Bitcoin network.
Despite these issues, PayPal’s adoption of bitcoin supports a growing payment infrastructure, which would further enable the circular economy of bitcoin businesses.