A few days after making an announcement, which caused a stir in the crypto sphere, rumors arose that PayPal is looking for crypto companies to buy
This week’s headlines revolve around PayPal and its latest announcement to provide support for cryptocurrencies. The excitement resulting from the news saw Bitcoin’s price explode to a $ 13,250 high in 15 months.
PayPal is rumored to be interested in acquiring crypto BitGo custodian. A report from the Bloomberg suggests that BitGo is just one of the crypto companies that PayPal is eyeing. According to those familiar with the discussions, the deal has not yet been finalized.
Bloomberg Businessweek presenter Carol Massar yesterday sent a tweet saying: “* PAYPAL SAID BEING IN SPEECH TO BUY CRYPTO COMPANIES INCLUDING BITGO.“
The particular interest in BitGo is not unfounded, as PayPal needs a premium custody service to handle the crypto features it is presenting. What better option is there than BitGo – one of the oldest institutional-oriented platforms that offers customers personalized custody services?
BitGo was founded in 2013 and currently serves several companies in the cryptocurrency industry, including Binance and Nexo. BitGo raised $ 15 million in a financing round in 2018, secured with support from Galaxy Digital and Goldman Sachs.
Anonymous sources in the Bloomberg report said that PayPal and BitGo are likely to complete the deal in a few weeks. There is also the possibility that the deal will not close if the parties do not reach an agreement, in which case PayPal will consider other alternatives.
The crypto community expressed different reactions to rumors of a possible acquisition of PayPal. Thorchain’s official Twitter account reacted to the issue with concerns about the decentralization of wrapped Bitcoin, since the majority of Bitcoin kept in the protocol is reserved by BitGo .
a account tweet said: “Here is the WBTC. Most of the Bitcoin wrapped is held by BitGo. PayPal is not a good actor in this area. Position yourself accordingly.“