PayPal holds acquisition talks with BitGo, targets larger share of crypto market
PayPal Holdings recently announced that it would soon launch cryptocurrency trading services on its platform. To materialize this decision, the payments giant is now in talks with several crypto companies for acquisition purposes. The most prominent of these companies is BitGo, a crypto lending service.
Sources at Bloomberg reported about PayPal’s plans to acquire numerous companies to boost its stake in the crypto market. They revealed that acquisition talks are already underway and that the deal could be sealed in the coming weeks. However, PayPal has provided no clarity over this, and it is unclear how much the company would pay to take over BitGo.
BitGo is a great channel for PayPal to garner a stake in the crypto trading market. The crypto lender started operating in 2013 as a holder of crypto assets, a crypto custodian, but later added lending and brokerage services for its customers.
The company’s worth can be identified by the quality of its investors – Goldman Sachs, Craft Ventures, Galaxy Digital Ventures, DRW, Redpoint Ventures, and Valor Equity Partners.
Only two days ago, PayPal announced that it would start crypto trading services on its platform. This would include, buying, selling, and trading of crypto assets. While the company is only providing the four most notable coins for trade initially – Bitcoin, Ethereum, Bitcoin Cash, and Litecoin – the number is expected to grow. Moreover, PayPal has employed Paxos Trust Company to provide the infrastructure for these new services. Paxos is a competitor to BitGo.
The acquisition of multiple firms in the crypto trading market, as stated by the anonymous sources, would bring a tsunami of new customers to PayPal. Additionally, this would lift crypto trading from the shadows and make it a mainstream phenomenon.