Cryptocurrencies

PayPal plans to acquire crypto companies to expand services – Cryptocurrencies

Will PayPal boost the price of Bitcoin (BTC) with every announcement it makes about the launch of its crypto services? The bulls do not say no to such a blow of the pump.

PayPal would negotiate the acquisition of a well-known crypto platform: are we already preparing the starting blocks of BTC for the race to the 20,000 USD?

PayPal: your secure payment solution for the purchase of crypto businesses

Notice to crypto start-ups: PayPal would prepare to acquire many crypto companies.

The electronic payments giant had announced the launch of a service for buying, selling, and holding cryptocurrency.

PayPal had then entered into a partnership with Paxos Trust Company. Rumors are circulating about a PayPal in talks for the purchase of BitGo, one of the leading companies in the storage and custody of digital assets.

Sources familiar with the matter argue that the deal could be finalized within a few weeks.

However, other sources believe that negotiations may not be successful and the conclusion of this purchase therefore remains uncertain for the moment..

BitGo, the provider of crypto services to institutional investors

At this stage, no details relating to the amount of the acquisition of BitGo has not been revealed. The parties concerned refrained from making any comments on the matter.

Founded in 2013, BitGo is supported by many investors who include Galaxy Digital Ventures, Digital Currency Group and Goldman Sachs.

BitGo had obtained a license from New York State Banking Law as an authorized provider for digital asset deposit services as of August 2020.

Solutions developed by BitGo are mainly designed for institutional investors, this probably explains the interest of PayPal for the society.

This possible acquisition worries some players in the cryptosphere such as THORChain : a tweet highlighted the impact this would have on the decentralization of Wrapped Bitcoins (WBTC). A majority of BTC blocked on this protocol are kept on BitGo.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Are the current major players in the cryptosphere all doomed to be bought out by players in traditional finance who decide to switch to the new finance? We would see banks acquiring exchanges once they decided to enter the crypto shift. Can we really do something new with old people? The cryptosphere was born with Bitcoin and not sure whether Satoshi Nakamoto created it in a simple ” business optics “. We applaud the arrival of institutional investors, we close our eyes to the risks that this poses to the very philosophy of cryptocurrencies.

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