Report: PayPal is planning to acquire Bitcoin custodian BitGo

  • PayPal is reportedly planning to acquire a digital currency custody platform, BitGo.
  • The report comes soon after it announced that its customers would soon begin buying cryptos from the platform.

Two days ago, the leading online payment company, PayPal officially made its move into the cryptocurrency market. The company made an announcement that its users can begin buying and selling digital currencies. Today, the digital payment giant is reportedly planning to strengthen its move in the cryptocurrency market via an acquisition of a crypto-related company.

PayPal is reportedly interested in BitGo

While citing people familiar with the story, Bloomberg reported on Thursday that PayPal is exploring digital currency companies for acquisition. Among these companies, is BitGo, a digital assets custodian platform headquartered in California. The sources informed that the payment giant has already been in contact with the BitGo management team, and might reach a deal with them in the coming weeks.

The development is expected to widen PayPal’s service in cryptocurrency. But, there is no certainty that the planned acquisition of BitGo might work out successfully. However, the sources did mention that the digital payment company is ready to reach out to other crypto firms, should the deal fail. Meanwhile, there’s no hint as to how much PayPal is willing to pay for the crypto custodian.

For the record, however, BitGo reportedly bagged about $58.5 million in the past two years, raising its valuation to about $170 million. The custodian is backed by notable crypto venture companies like Digital Currency Group, Galaxy Digital Ventures, including Goldman Sachs Group Inc., and Valor Equity Partners. 

PayPal to support buying and selling of Bitcoin, and others

The disclosure today comes two days after the payment company revealed that its US customers would soon be able to buy and sell digital currency. The company said the service was opened only for four cryptocurrencies which include Bitcoin, Litecoin, Ether, and Bitcoin Cash. From the company’s digital wallet, the users can equally shop with the digital currencies from the 26 million merchants that accept PayPal, later next year. 

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