Payment giant announced this week that it will have cryptomoeda support
After announcing that it will now offer support for transactions with Crypto Profit may be about to acquire the operations of BitGo, one of the most reliable and used portfolios and custody companies in the market.
According to Bloomberg, the two companies are in negotiations and may reach an agreement in the coming weeks. Sources linked to the issue explained to the publication that the intention to purchase is assessed privately, and may not materialize if PayPal decides to close deal with another company.
Founded in 2013 in Palo Alto, California, BitGo attracted US$ 58.5 million in investments in 2018, according to the specialized website PitchBook. The company offers digital portfolios for Bitcoin, Bitcoin Cash and Litecoin with a high level of security, being one of the first to focus on institutional investors.
In August, BitGo applied to become a qualified custodian of cryptomaps in the state of New York. On that occasion it launched a statement revealing the expectation of „considerably increasing market demand for its products and services“.
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Last Wednesday, PayPal announced that it will offer users the option to buy, sell and maintain cryptomoedas, with plans to offer the feature first to US residents.
With this, about 150 million customers will have easy access to operations with Bitcoin, being able to use the digital currencies to make purchases in more than 26 million stores belonging to the network. The announcement was enthusiastically received by the industry, and led Bitcoin to exceed US$ 13,000 for the first time since July 2019.
Now, with the possible acquisition of BitGo, PayPal expands its newly started digital currency business, strengthening its potential to start a mass adoption of cryptomorphs.
No figures or other details about the purchase have been released. Looking for Bloomberg, none of the companies wanted to comment on the matter.