Rumours circulate that PayPal could soon acquire BitGo

Quick take

1 minute read

• The talk of the town in the crypto space this week is the news that came from PayPal announcing that it is going to be offering crypto payments in the early months of 2021. 

• As the news broke, as did rumours that the company is looking to acquire a crypto assets custody firm. 

The talk of the town in the crypto space this week is the news that came from PayPal announcing that it is going to be offering crypto payments in the early months of 2021. As the news broke, as did rumours that the company is looking to acquire a crypto assets custody firm. Allegedly, the company is talking with BitGo for acquisition purposes.

In fact, the rumours go on to highlight that the two companies could reach an agreement in the coming weeks. Although, it is worth mentioning again that this is just a rumour answer the deal is far from certain. In fact, PayPal could even look to other avenues and different companies to acquire also within the crypto space.

For those that don’t know, BitGo is a multi-signature custodian that was founded seven years ago in 2013 and in 2018, $15 million was raised in around led by Goldman Sachs and Galaxy digital.

Interestingly though, not everyone was very excited about the potential rumour that BitGo could be acquired by PayPal. THORChain expressed their concerns in regards to the decentralisation of wrapped bitcoin on Twitter:

There goes wBTC.

The majority of wrapped Bitcoin is custodied by BitGo.

PayPal is not a good actor in this space. Position accordingly. https://t.co/bETSfDr88J

— THORChain ⚡️(ᚱ) (@thorchain_org) October 22, 2020

As previously noted, this all comes off the back of the announcement from PayPal in that it will be launching crypto payment services next year.

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