PayPal weighs BitGo acquisition, Bloomberg reports

The payments company PayPal is considering options to acquire cryptocurrency firms to expand its product lineup. Among them is the custodian BitGo, Bloomberg reports, citing familiar sources.

The deal could take place within the coming weeks. The publication notes that if talks break down, PayPal could redirect its attention to another company in the industry.

Both companies did not comment on the report.

According to Crunchbase, as of April 1, 2019, after five rounds of funding BitGo had raised $69.5 million. This figure excludes undisclosed data.

Among BitGo’s investors are Goldman Sachs, Digital Currency Group and Galaxy Digital Ventures.

BitGo set out to transform into a prime broker. To that end, the custodian solutions provider launched a platform that combines trading, lending and custody of digital assets.

In July, BitGo integrated tools into its wallets to meet FATF’s anti-money-laundering requirements.

In February, as part of its global expansion, BitGo opened offices in Switzerland and Germany, and in May launched in India.

CoinShares’ Chief Growth Officer Meltem Demirors, on CNBC, suggested that one of PayPal’s next steps in the digital asset space could be the launch of its own cryptocurrency.

$PYPL is cashing out on crypto. Coinshares’ @Melt_Dem says this is how the move could impact Bitcoin and future of fintech. $BTC pic.twitter.com/0Zbm9TgoMF

— CNBC’s Fast Money (@CNBCFastMoney) October 21, 2020

Demirors notes that PayPal could be nudged toward such a step by Venmo’s strong user base being tied to the app. PayPal’s involvement in the Libra Association, which plans to issue a global stablecoin, could also influence this.

Earlier PayPal announced the launch of a feature to buy, sell, and hold Bitcoin and other cryptocurrencies. Its mobile payments service Venmo will add this capability in 2021.

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