PayPal Acquires Crypto Security Company Curv
- A source close to the matter revealed that the deal was worth less than $200 million.
- Curv will join PayPal’s newly formed unit focused on blockchain, crypto, and digital assets.
PayPal headquarters in San Jose, CA, USA, 12 February 2020. Shutterstock
According to the official announcement, the acquisition is set to accelerate and expand PayPal’s initiative to enter into the cryptocurrency market. The Tel Aviv-based company is a leading provider of cloud-based infrastructure for digital asset security.
Jose Fernandez da Ponte, PayPal’s vice present and general manager for blockchain, crypto, and digital currencies, said the company was “impressed” by Curv’s technical talent and the technology they’ve built.
While the company hasn’t disclosed the details of the acquisition, a source familiar with the matter told CNBC the deal is worth less than $200 million. PayPal has also created a new business unit focused solely on blockchain, crypto, and digital currencies that will help the company drive growth and innovation. Curv and its 40 employees will join the newly formed group, the company said in the release.
Last year, Curv raised $30 million in funding from leading industry investors such as Coinbase Ventures, CommerzVentures, and Digital Currency Group.
- PayPal USD (PYUSD) will be issued by Paxos and the Ethereum blockchain, and is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
- The company said the stablecoin can be redeemed for U.S. dollars at all times, and exchanged for any other crypto supported by the platform, including BTC, ETH, BCH, and LTC.
PayPal logo and sign in front of PayPal Holdings headquarters building in North San Jose Innovation District in Silicon Valley, San Jose, California, USA, 17 March, 2019. Michael Vi/Shutterstock
- The new funding will help Chaos Labs build out and expand its suit of risk and security products that can help DeFi protocols.
- The seed funding round was co-led by PayPal and Galaxy Digital, but also saw participation from including Coinbase Ventures, Polygon, Avalanche, OpenSea, Uniswap, and others.
- PayPal’s new app will provide a personalized view of the customers’ account balance, wallet, payments, and finances.
- The improved mobile application will bring a slew of features to its users, including direct deposits, bill pay, a digital wallet, crypto capabilities, and more.