Payments processor PayPal is rumored to be exploring cryptocurrency-centric companies to buy, including crypto custodian BitGo, according to a new report by Bloomberg. This comes just days after PayPal confirmed it is entering the crypto space by launching a crypto buying and selling service for its customers.
PayPal Set To Acquire BitGo And Other Crypto Companies
Bloomberg cites sources familiar with the matter, who revealed that PayPal is currently in talks to purchase BitGo for an undisclosed amount. BitGo, a crypto custodian backed by Goldman Sachs, is undoubtedly one of the biggest crypto custody providers in the industry. It currently provides custody services to leading crypto companies like Nexo, Binance, and Coinbase.
The unnamed sources indicated that PayPal and BitGo might complete the acquisition process in a couple of weeks. However, the source clarified to Bloomberg that the ongoing talks are far from any concrete conclusion. “Talks could still fall apart and PayPal could opt to buy other targets.”
The reports of PayPal purchasing crypto companies comes hot on the heels of the firm’s announcement that it will begin allowing its 346 million customers to buy, sell and hold bitcoin, Ethereum, Bitcoin Cash, and Litecoin on its platform. As such, PayPal’s interest in buying BitGo is not unfounded, as it will require the services of a crypto custodian to support its new crypto offering.
PayPal is seemingly moving all-in into crypto. In its announcement on Wednesday, the payments firm also revealed that it would be partnering with digital asset services provider Paxos for its crypto venture. Acquiring BitGo would further cement the belief that PayPal is ready to dive into the crypto market.
While some industry execs like Ripple CEO Brad Garlinghouse are not thrilled with PayPal’s crypto service as it overlooks the fundamental tenets and benefits of cryptocurrency, the market has reacted positively. The price of the dominant cryptocurrency pierced the $13,000 level following the news.
It should be noted that neither PayPal nor BitGO has confirmed the acquisition rumors as of yet.