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- PayPal is exploring crypto takeovers including a Goldman-backed startup BitGo, according to a Bloomberg report.
- No deal has been finalized yet, and talks could still fall through as PayPal may seek other targets, the news agency reported.
- BitGo, which offers cryptocurrency wallets, runs on multisignature technology, meaning transactions can be executed by providing a collection of signatures for added security.
- PayPal only recently announced it would let users buy, sell, and hold cryptocurrencies on its network. Customers will be able to use digital currencies for payments at 26 million merchants beginning early 2021.
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PayPal is looking to acquire cryptocurrency firms including a Goldman-backed startup BitGo, Bloomberg reported on Thursday, expanding its recent entry into the digital currency market.
The US online payments company has been in discussions with BitGo – a custodian of digital assets. But any potential deal could still fall apart as PayPal may look at other targets, the news agency said, citing sources.
PayPal did not immediately respond to Business Insider’s request for comment.
BitGo raised about $58 million in venture capital funding in 2018, according to PitchBook. If a deal is finalized, the amount that PayPal would pay for the startup is unknown at this stage.
The startup offers multisignature cryptocurrency wallets, meaning that transactions require two or more signatures before they can be executed. Its investors include Goldman Sachs, Galaxy Digital Ventures, Valor Equity Partners, Redpoint Ventures, DRW, Digital Currency Group, and Founders Fund.
PayPal just announced on Wednesday that its network would allow customers to buy, sell, and hold bitcoin and other digital coins. Beginning early 2021, customers would also be able to use cryptocurrencies for transactions at 26 million merchants through its platform.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” Dan Schulman, president and CEO of PayPal, said in a statement.
The announcement triggered a rally in the price of Bitcoin to its highest since July 2019. Bitcoin, the largest digital currency by market capitalization, was trading at $12,888 on Friday.
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