Global payment company PayPal is planning to acquire a crypto asset custody company. On October 23, Bloomberg released a report saying that the company is currently negotiating with BitGo Inc.
An anonymous source mentioned in the report said that the two companies may reach an agreement within a few weeks. BitGo is a multi-signature escrow company founded in 2013. In 2018, the company raised $15 million in a financing round led by Goldman Sachs and Galaxy Digital.
However, it is believed that the transaction is far from finalized. According to reports, “the negotiation may still break down, and PayPal may choose another target for the acquisition.”
This rumor appeared after a statement from PayPal this week, which revealed that PayPal will launch an encrypted payment service next year. This is a catalyst for the rapid increase in the price of Bitcoin (BTC), which has risen by more than 10%.
Not everyone is happy with the possible acquisition of PayPal. The official account of Thorchain (RUNE) expressed concerns about the decentralization of Wrapped Bitcoin (WBTC) because most of the Bitcoin (BTC) locked in the agreement is stored in BitGo. .
Something is going to happen to wBTC.
Most of wBTC is hosted by BitGo.
PayPal did not bring benefits to this area.
— THORChain ⚡️(ᚱ) (@thorchain_org) October 22, 2020
Yesterday, Meltem Demirors, chief strategy officer of crypto asset management company CoinShares, predicted that payment company PayPal will seek to launch a stable currency after it withdraws from the governance association of the Libra project launched by Facebook.
WWW.BLOCKCAST.CC 