On Wednesday, digital payment giant PayPal officially announced its entry into the digital currency market. The company disclosed that its customers would soon start buying and selling cryptos directly from its platform. The information thrills many investors and experts, as the development means more adoption for the cryptocurrency industry. The price of Bitcoin (BTC) reacted positively to the announcement, as it reached a new yearly high.
Aside from this, an unconfirmed report today claims that the payment company is also looking to acquire crypto companies, including BitGo. Per the sources, PayPal intends to strengthen its venture into this new industry via the acquisition.
PayPal Reportedly Negotiates for BitGo Acquisition
PayPal is currently in contact with cryptocurrency custodian BitGo to acquire the company. Bloomberg reports the development, citing a group of persons familiar with the matter. The sources claims that the payment company intends to finalize the acquisition in the coming weeks. For now, it remains uncertain if the reported acquisition of the custody company might turn out successfully.
However, the payment company is ready to negotiate with other targets in the cryptocurrency industry if the deal with BitGo fails, the sources claim. The report comes as a surprise to crypto enthusiasts, primarily due to the prominence of BitGo in the cryptocurrency industry. As a custodian, BitGo allows crypto investors to securely store their Bitcoin and other digital currencies. Based in California, the company boasts as one of the first custodians serving institutional investors.
There is no indication how much money PayPal is willing to put on the table. However, it’s worth mentioning the company’s valuation sits at $170 million after it raised $58.5 million in the past two years. Additionally, popular crypto venture companies like Digital Currency Group, Galaxy Digital Ventures, and others are backing the company.
PayPal Ventures Into Crypto Services
As Blocdesk reported, PayPal officially revealed its plans to debut cryptocurrency services for its users on October 21. The service purports to enable the buying and selling of four digital currencies directly from the company’s digital wallet. The cryptocurrencies include Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). The service debuts for the US users in the coming weeks before rolling out for international users in 2021.
The announcement thrills many investors, although some people criticize that users can’t transfer those cryptos to external wallets. Meanwhile, the news was quite bullish for Bitcoin as it reached a new yearly high above $13,000 some hours after. How much of a role PayPal plays in this market surge, is impossible to determine.