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PayPal drops bid to acquire crypto custodian BitGo

PayPal drops bid to acquire crypto custodian BitGo

PayPal’s acquisition discussions of crypto custodian BitGo have fallen through. In October, there were rumors that PayPal would acquire BitGo. The payments giant is now reportedly investigating other potential buys. Both firms are departing to concentrate on different ventures now. 

The discussion about the takeover between payment giant PayPal, and crypto custodian, BitGo have collapsed. It happened after both parties failed to agree on a cost. Lately, Bitgo was estimated at $170 million in a 2018 funding round. Mike Belshe, BitGo’s CEO, refused to verify PayPal rumors. However, he told in a current interview that they have been in discussion with various companies over the years. He further states that his crypto wallet and blockchain security firm will not settle for a meagre exit.

PayPal’s growing interest in cryptocurrencies.

The acquisition rumors circulated after PayPal formally launched crypto services. Prior to that, there were a few links that implied the payment giant is keenly interested in the cryptocurrency space. A significant example of PayPal’s preoccupation in the space was its stake in TRM labs, a crypto compliance and risk management platform. Moreover, PayPal recorded many similar patents constituting to speed up bitcoin transactions processing time via a more active cryptocurrency payment system.

Moreover, conversing about BitGo, it operated originally as a Bitcoin wallet provider. However, it then ventured into other cryptos and recently supported various altcoins. The company offers multi-signature wallets adjacent to qualified custodial services and admittance to liquidity via its institutional-focused trading service, BitGo Prime. Further, BitGo allows its users to cover up to $100 million worth of their digital assets in their accounts along with the blockchain security firm.

However, just a few hours before PayPal’s decision to abandon its bid, BitGo stated it had reached $16 billion in digital assets under custody (AUC). Meantime, PayPal is closely operating with Paxos, a crypto services firm. Paxos’s brokerage service boosts PayPal’s cryptocurrency trading services. Consumers can purchase bitcoin and other cryptocurrencies through PayPal’s digital wallet, enabled by Paxos.

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