PayPal Exploring Acquiring Crypto Companies, Already in Talks with Bitcoin Custodian BitGo
PayPal is now exploring acquisitions of crypto companies, including bitcoin custodian BitGo, reported Bloomberg.
This week, Paypal announcing support, buy, sell, and hold for cryptos has been the biggest news. The online payments company will also be soon allowing its customers to shop at its 26 million merchants within its network with digital currencies.
This led to a spike in bitcoins’ price past $13,000, a new 2020 high last seen in July last year, and the other three altcoins – Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), that are supported as well.
Now, PayPal is holding talks with BitGo, which are still in the early stage, and it could either be finalized within weeks or fall out as it is possible PayPal might opt to buy other targets.
BitGo basically helps investors store BTC securely. Besides custody, it also provides trading, lending, and staking functions. The company has also issued $1.5 billion worth of wrapped bitcoin (WBTC) on the Ethereum network.
Backed by investors like Goldman Sachs Group, Digital Currency Group, DRW, Craft Ventures, Galaxy Digital Ventures, Redpoint Ventures, Founders Fund, and Valor Equity Partners, BitGo raised $58.5 million in 2018 at a $170 million valuation.
The Palo Alto, California-based company, was founded in 2013 by CEO Mike Belshe and applied to New York regulators in August to become an independent, regulated qualified custodian under New York State Banking Law.
At the time of the crypto announcement, PayPal had said it would partner with the regulated crypto service provider and BitGo competitor Paxos Trust Company.