- After announcing that it will start dealing with crypto only two days ago, PayPal has made its first move.
- The company is looking to acquire crypto firms, according to inside sources.
- The first firm PayPal has gone to is a BTC custodian, BitGo, and the two have already entered negotiations.
The online payments giant PayPal recently caused quite a disruption in the crypto industry, after it revealed that it will start working with cryptocurrencies. Now, the firm which stayed outside of the crypto industry for all these years has a lot of work in order to catch up.
But, according to new information, the company plans to start doing it through different acquisition, as it is currently exploring different possibilities.
PayPal enters the talks with BitGo
According to unnamed sources familiar with the matter, PayPal is currently looking into acquiring cryptocurrency companies. One of the companies that PayPal seems particularly interested in is the crypto custodian, BitGo.
According to what is known, PayPal has already started talks with the Bitcoin custodian, The talks are, reportedly, going well, and a deal might be reached in the next couple of weeks. Of course, there is no guarantee that the deal will be reached by the time the talks are finished, and PayPal may end up choosing a different firm.
So far, it remains unknown how much PayPal might have to pay to acquire BitGo. Neither of the companies was willing to offer an official comment regarding the rumors at this time.
Details about BitGo
BitGo is a crypto custodian based in Palo Alto, California. It was founded 7 years ago, in 2013, by its current CEO, Mike Belshe.
The firm offers crypto wallets that require multiple signatures to allow transactions, but also offline vaults for keeping Bitcoin safe from potential threats.
Its website claims that it was among the first firms to start focusing on institutional investors. These days, the firm has a long list of influential backers, including Galaxy Digital Ventures, Craft Ventures, Redpoint Ventures, Goldman Sachs Group, and many others. The fact that PayPal is looking into acquiring the firm comes as an unusual twist of events, since the firm already noted that it would partner with Paxos Trust Company, which is one of BitGo’s biggest competitors. Paxos is a regulated provider of crypto products and services.