PayPal is searching for a cryptocurrency custody company according to a story published in Bloomberg.
PayPal Allegedly Looking to Acquire a Cryptocurrency Custody Company
Anonymous sources alluded to the idea that PayPal could acquire BitGo. BitGo was created in 2013, a multi-signature custodian. In 2018, Goldman Sachs and Galaxy Digital provided $15 million to BitGo in a single round of funding. Yet, the deal is considered to be far from certain.
It is speculated this week that PayPal will introduce next year’s crypto payment services as the impetus for a fast double-digit percentage drive for Bitcoin.
BitGo and PayPal
BitGo, which is located in Palo Alto, California, is a digital asset and protection confidence agency. It was created by Ben Davenport and Mike Belshe in 2013.
PayPal revealed Wednesday that its clients can purchase and sell and retain cryptocurrencies from digital wallets, including Bitcoin, Ether, Bitcoin Cash, and Litecoin, and use virtual money to shop on their network of 26 million trader companies.
The announcement led Bitcoin to raise for the first time to $13,000 since July 2019.
PayPal announced that it will join in a partnership with BitGo’s rival, the cryptocurrency custodial service provider, Paxos Trust Business.
Investors in BitGo include Goldman Sachs, the Crafts, the Digital Currency Community, and the DRW, the Redpoint Ventures, the Valor Equity Partners, and the Fund of Founding are sponsored by BitGo.