PayPal is reportedly set to acquire cryptocurrency custody firm Curv as it looks to expand its crypto operations
Electronics payment giant PayPal is said to be in the process of acquiring Curv, a technology firm that allows people to store cryptocurrencies securely. The payment giant ventured into the cryptocurrency market last year and is looking to expand its operations.
Israeli news outlet Calcalist reported yesterday that Curv would be sold for between $200 million and $300 million. However, the report didn’t name the buyer. Three sources familiar with the situation told CoinDesk that PayPal is the unidentified buyer of Curv.
Although Calcalist reported that Curv was up for sale for roughly $200—$300 million, one of the sources quoted a higher figure and said PayPal was buying Curv for $500 million. The source was sure that the deal was real and would be announced soon.
PayPal has been one of the leading e-money service providers in the world. The firm began offering cryptocurrency services to its clients last year and has already garnered a huge following in the sector.
According to some people, PayPal turned its attention to Curv after its talks with crypto custody and trading firm BitGo fell through in 2020. The payment giant was willing to acquire BitGo for $750 million, but the deal didn’t materialise, the sources added.
PayPal has been expanding its services in the financial space over the past few years. Perhaps the easiest way to expand services is by acquiring companies that are already offering the service you intend to offer. PayPal’s acquisition of Venmo has been positive for the company, and it intends to make similar moves in the cryptocurrency space.
The payment firm partnered with New York-regulated Paxos to allow its customers in the United States to buy cryptocurrencies directly. PayPal is now getting ready to provide similar services to its UK users.
The company is benefiting from its entry into the crypto space so far. According to its Q4 2020 earnings report, PayPal recorded an 11.8% increase in transaction revenue quarter over quarter. PayPal added that customers purchasing cryptocurrencies via its platform are logging into their accounts twice as much as they were before the crypto services were available.
The consensus is that the entry of corporate entities like PayPal, Square, Tesla, MicroStrategy and others into the cryptocurrency market has helped push the prices of BTC and others higher in recent months.