Paypal just announced its intention to acquire Israel-based Curv, a cloud-based infrastructure provider for digital asset security.
Paypal gave no specific details of the deal, but it intended to accelerate and expand its initiatives to support cryptocurrencies and digital assets using this purchase. A source familiar with the matter stated that the transaction is worth less than $200 million. The total acquisition will occur within the first half of 2021.
Paypal is Expanding its Realm
CEO Itay Malinger and CTO Dan Yadlin established Curv in 2018 to provide cloud-based digital asset protection technology businesses. The agreement comes a few months after the company confirms its commitment to the rapidly expanding segment and says that the transition to tokens is “inevitable” in October. Recently, PayPal has formed a new business unit focusing on digital currencies, crypto, and blockchains. The newly formed community will join Curv, said PayPal.
Jose Fernández da Ponte, Vice President of PayPal, said that the acquisition of Curv is part of their effort to invest in talented and technological skills to realize their vision of a more inclusive financial system.
Also, he said that they were impressed with Curv’s technological talents, entrepreneurial spirit and the thinking behind the technology they developed during recent years in discussions with Curv’s team. We are looking forward to welcoming PayPal’s Curv team, he finished.
Curv’s co-founder and CEO, said that the company does feel better at home with PayPal to continue on its innovation path now that the adoption of digital assets is accelerating.
PayPal in the Crypto Space
Since October, PayPal has been searching for cryptocurrency procurement in New York City to deliver purchases and sales of cryptocurrency. The payments giant was in negotiations for purchasing BitGo for as much as $750 million, but the deal fell through.
Cryptorand has little supply in Multi-Party Computing (MPC) shops such as Curv and Fireblocks – the latter allegedly works on BNY Mellon’s crypto-custody. For example, according to a source knowing the contract, Curv had previously rejected a quote purchased via Novi, Facebook crypto arm.
Curv has collaborated with many prominent cryptographic companies focusing on Europe, such as eToro and FalconX. It is clear to PayPal that it is serious about extending its cryptographic footprint beyond the US.
PayPal is still in its early stages of crypto development, but it will improve as users can buy cryptocurrencies, and crypto trading is possible in more markets. By the end of the first quarter, the company said that customers would be able to use crypto to pay for products at 29 million commercial locations. As big banks swerve in to form partnerships or “acqui-hire” on the custody front, the year ahead could see more crypto M&A from institutional players.