At the start of 2021, it will be possible to buy, sell, and hold Bitcoin and other cryptos on PayPal.
As a result, PayPal is reportedly planning to purchase several cryptocurrency-related companies.
PayPal wants to buy BitGo
The digital payments giant announced Wednesday, October 21 that it will be possible to buy and sell Bitcoin and other cryptocurrencies (Ethereum, Litecoin) on its platform.
PayPal customers will also be able to use their cryptocurrencies
to make purchases at the 26 million merchants in its network from early 2021.
As a result, PayPal has reportedly planned a succession of acquisitions to launching its new service. According to Bloomberg, talks are said to be underway for the purchase of the cryptocurrency custody company BitGo.
BitGo was established in 2013 and has received backing from investors such as Goldman Sachs. The Palo Alto-based company provides cryptocurrency custody solutions to businesses. BitGo has reputable clients such as the Bitstamp exchange and the Crypto.com app.
The cost of such an acquisition has not been disclosed. However, BitGo raised $ 58.5 million in 2018 for a valuation of $ 170 million.
Is PayPal too late?
PayPal seems to want to catch up after having long rejected cryptocurrencies. Dan Schulman, its CEO, said in January 2018: “ The volatility of cryptocurrencies makes them unsuitable as a real currency that traders can accept. “
Today, players like Square have gotten ahead of PayPal. The company created by the CEO of Twitter launched a Bitcoin buying service for 2 years.
Another giant, Robinhood, offered cryptocurrency trading as early as 2018.
Late or not, the announcement saw Bitcoin surpass $ 13,000 for the first time since July 2019.