Shortly after it was revealed PayPal will launch crypto payments in 2021, rumors are circulating that the payments giant is looking to purchase a digital asset custodian.
Global payments firm PayPal is looking to acquire a crypto asset custody firm, with a report published by Bloomberg on Oct. 23 claiming the company is currently in talks with BitGo Inc. Anonymous sources cited in the report claimed that the two companies may reach an agreement within a matter of weeks.
BitGo is a multi-signature custodian that was founded in 2013.
In 2018 the company raised $15 million in a round led by Goldman Sachs and Galaxy Digital.
The deal is believed to be far from certain, with the report noting that: "Talks could still fall apart and PayPal could opt to buy other targets."
The rumors follow this week's announcement that PayPal will be launching crypto payment services from next year, which was the catalyst for a quick double-digit percentage price push for Bitcoin.
Not everyone is overjoyed with PayPal's potential acquisition, with the official account of Thorchain expressing concerns about the decentralization of Wrapped Bitcoin, given most of the Bitcoin locked in the protocol are stored with BitGo.
There goes wBTC. The majority of wrapped Bitcoin is custodied by BitGo.
Yesterday, Meltem Demirors, the CSO of crypto asset manager CoinShares, predicted that PayPal will seek to launch a stablecoin after the payments company left the governance association for Facebook's Libra project.
PayPal rumored to be eying acquisition of crypto custodian BitGo
Published on Oct 22, 2020
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.