Late last night, Bloomberg reported that PayPal is interested in taking over the Bitcoin BitGo storage service.
The payment processor announced earlier this week that it will integrate the purchase and sale of Bitcoin and other cryptocurrencies. Now it appears that they are also interested in taking over (other) crypto companies.
Buying 1000 euros of Bitcoin without commission? Get started at Bitvavo
Bitcoin and Paypal
PayPal Holdings is currently investigating the possibilities for the acquisition of BitGo. They have reportedly already had a few conversations with the custodial. This company helps investors to securely store their Bitcoin.
Anonymous sources state that the deal should be completed within a few weeks. PayPal’s wish is clear, but the talks can still go wrong.
These same sources confirm that the payment processor could choose to take over another company if they can’t get closer.
But the intention is more than clear: PayPal wants to take Bitcoin’s side. Ironically, it said goodbye to Facebook’s private initiative last year. They are no longer part of the Libra consortium, so they are now fully committed to Bitcoin.
Save Crypt Currency
The day before yesterday, Reuters also reported that U.S. customers of the multi-billion dollar company can use various services to buy, sell and also store Bitcoin ‚within weeks‘. As part of this move, they are partnering with Paxos.
As an indication: PayPal has 346 million active users and processed $222 billion in transactions in the second quarter of this year. It is a huge player in the world of online payments and they now have their eyes on the industry.
However, the payment giant also confirmed that customers will not be able to withdraw their money into their own wallet. It doesn’t look like BitGo is going to add this functionality, as it just got approval this year to act as a regulated custodial. They focus on keeping Bitcoin for institutional clients, not individuals.
BitGo has reportedly raised approximately $58.5 million over the past two years, making the company now valued at approximately $170 million. The custodian has received support from Digital Currency Group and Galaxy Digital Ventures, among others.