Now that PayPal has permitted the buying and selling of bitcoin and other forms of crypto on its site, it would appear the company fancies itself the ultimate crypto platform, and apparently, it’s looking to expand its horizons with the potential purchase of exchanges like Bit Go.
PayPal Has Its Sights Set on Bit Go
PayPal announced early last week that it would allow users to purchase items and services with cryptocurrency through its platform. In addition, people could also trade and purchase cryptocurrencies themselves, making PayPal the latest addition to the world of crypto exchanges. Everyone reacted positively to the news, with traders and enthusiasts breaking out the champagne and the price of bitcoin itself exploding in ways nobody saw coming.
The price of the asset shot up from the high $11,000 range to around $13,100, making a more than $1,000 gain for BTC in just a matter of days.
But now it looks like PayPal has gotten a serious taste for crypto. Bitten by the “bitcoin bug,” to put things lightly, the company has been in talks with cryptocurrency exchanges like Bit Go to see about potential acquisitions and exchange purchases.
What’s intriguing about this is that Bit Go is not just a trading platform. Instead, it offers its own unique wallet structure and serves as a custodian of sorts. It also features cold storage options, meaning that all assets are stored offline and in safes, thereby preventing hackers from getting their fingers on cryptocurrencies they haven’t earned, much less deserve.
To top things off, Bit Go also provides tax services, portfolio management and trading options. The company is much less a crypto exchange and more of a full-scale financial services firm. Should the company be purchased by the likes of PayPal, it would make the latter larger and much more powerful than ever.
Various sources claiming to be familiar with the talks PayPal has been having with Bit Go say that should the company decide to go ahead with the purchase, this could happen over the course of the next few weeks. However, they are warning traders and enthusiasts not to get too excited yet, as nothing is set in stone and PayPal has not decided whether it will purchase Bit Go or turn its vision to another venture.
A Solid History
Bit Go was founded in California roughly seven years ago in 2013. Based in Palo Alto in the Silicon Valley, the company has raised a total of $70 million through five separate funding rounds. Past investors in the company include Galaxy Digital, Redpoint and Valor Equity Partners.
Last April, the company acquired Lumina, a financial platform designed to manage digital currencies. Thus, should PayPal decide to move ahead with the purchase, it would inherently be gaining access to two digital currency companies, not just one.