Industry News

PayPal walks out on BitGo acquisition

TL;DR Breakdown

  • PayPal will no longer be acquiring BitGo
  • Paxos powers PayPal’s crypto services

Top financial payment company, PayPal, will no longer be pursuing its interest in acquiring BitGo, a cryptocurrency firm, again. This was made known via a report by Fortune.

Earlier in October, there were rumors that the payment company was in talks with BitGo about the possibility of an acquisition. However, as it stands now, it appears that would no longer be possible.

According to Mike Belshe, the CEO of BitGo, he was not going to confirm the rumors between his firm and PayPal, saying that his firm has been in talks with everyone and that the company was not looking to accept a small exit. This could mean that the potential buyers may not offer what was acceptable to the firm owners.

Belshe further went on to say that BitGo had made its name in the crypto space, has a crypto custodian firm, and currently holds assets worth $16 billion for its clients. He added that the firm has been looking to reinvent itself into a full-service cryptocurrency company in the past year. Going forward, BitGo would henceforth be able to offer lending services, portfolio management, and a host of other services to its customers.

The Fortune’s report stated that the payment company was already seeking alternatives.

PayPal uses Paxos to power its crypto services

PayPal uses Paxos to handle its supply of crypto assets to its customers. Paxos Crypto Brokerage is saddled with making crypto services easy for businesses to roll out. 

Paxos enables PayPal users to carry out transactions like buying, selling, and even holding the digital assets from their digital wallets.

The financial payment company could have picked this firm because it holds a New York state trust charter. This makes the firm a qualified custodian that is permitted to hold assets like gold, Bitcoin, Ethereum, etc., on behalf of institutional investors.

This post was last modified on January 8, 2021 2:36 am

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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