PayPal is exploring the potential acquisition of cryptocurrency companies with BitGo tipped as an option for purchase.
According to Bloomberg[1], PayPal has been holding talks with BitGo[2], a digital asset platform that acts as a custodian for crypto assets. BitGo services include a wallet system, cold storage -- which keeps coins off the Internet and reduces the risk of theft -- as well as portfolio management, tax reporting, and trading options.
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Sources familiar with the matter told the publication that a deal could be reached "within weeks," but cautioned that nothing was set in stone and so the talks could still collapse -- or PayPal could "opt to buy other targets."
Founded in 2013, Palo Alto, California-based BitGo has previously raised $69.5 million[4] through five funding rounds. Investors include GS Growth, Galaxy Digital, Valor Equity Partners, and Redpoint.
CNET: Justice Dept. seizes millions of dollars in cryptocurrency allegedly linked to terrorism[5]
In April, BitGo acquired Lumina[6], a financial platform for managing digital assets.
On October 21, PayPal confirmed its entry into the cryptocurrency market, slated for 2021. The company received a conditional license from the New York State Department of Financial Services (NYDFS), as previously reported by ZDNet[7], which allows US users of the service to buy, hold, and sell cryptocurrencies.
TechRepublic: 10 things you thought you knew about blockchain that are probably wrong[8]
Major cryptocurrencies are expected to be supported, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Rumors relating to PayPal's potential cryptocurrency plans first surfaced back in June when job adverts[9]