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Paypal weighs crypto startup acquisition

Photo of: Nathan VDH
by Nathan VDH

Specializing in the transfer and storage of crypto-actives, Curv would be in discussions with PayPal with a view to a buyout. The payment giant would thus further develop its presence in cryptocurrencies.

Would PayPal be in the process of pressing the gas pedal a little more in the field of cryptocurrencies? At the end of 2020, the payment specialist launched a service in the United States for purchasing cryptocurrencies, including Bitcoin.

And in January, PayPal made its first investment by acquiring a stake in TaxBit, an expert in the taxation of crypto-actives. According to Bloomberg, the firm is now interested in another startup, Curv.

It provides crypto-custody services. Its MPC (multi-party computation) technology provides security for digital assets. But it also enables the transfer, storage and management of these assets on any distributed blockchain or registry.

Why should a multinational company like PayPal be interested? No official confirmation of these negotiations is given at this stage. According to one source, the discussions would only begin.

An acquisition of Curv may therefore not be successful. For PayPal, such a transaction would make sense nevertheless. Indeed, the company seeks to enrich its offer of services in the crypto sector. For the moment, it proposes purchase, sale and conservation of assets via its wallet.

In addition, PayPal plans to deploy these new features in the coming months within its Venmo mobile wallet. This launch should coincide with the international expansion of its crypto services.

Would Curv’s bank clients welcome such a buyout? The startup is indeed conducting various projects with major banks and asset managers. This is particularly the case with BNP Paribas Securities Services.

In October, the company confirmed that it was conducting tests in partnership with Curv. These should guarantee the security of security token transfers between market players (based on the ERC-1400 standard).

To carry out this transfer, BNP Paribas relies on Curv’s multiparty calculation solution. But like other banking players, the Frenchman wants to go further. This experiment is only a first step.

But “a significant step in our strategy to provide an integrated custody solution that combines both traditional and regulated digital assets,” declared a BNP higher-up in 2020.