Fintech giant PayPal has revealed that it has agreed to acquire Israel-based cryptocurrency custodian firm Curv for nearly $ 200 million. The deal is expected to close in the first half of this year.
According to a ad Shared by PayPal, the payments giant plans to use the purchase to "accelerate and expand its initiatives to support cryptocurrencies and digital assets."
The announcement quotes José Fernández da Ponte, vice president of PayPal and general manager of blockchain, cryptocurrencies and digital currencies, saying:
The acquisition of Curv is part of our effort to invest in talent and technology to realize our vision of a more inclusive financial system. During our conversations with the Curv team, we have been impressed by their technical talent, entrepreneurial spirit, and the thinking behind the technology they have built over the years.
Itay Malinger, co-founder of Curv, said that as the adoption of digital assets accelerates, the company feels that "there is no better home than PayPal to continue our innovation journey." According CNBC , the deal will be worth less than $ 200 million and comes months after PayPal affirmed its commitment to its cryptocurrency segment.
It partnered with Paxos to begin allowing users of its platform buy, sell and hold crypto assets. While the service is limited to BTC, BCH, ETH, and LTC and is only available in the US, the company is set to expand it to the UK soon.
The payments giant was said to be seeking a cryptocurrency custody acquisition for a few months, and it was reported that it had approached BitGo for up to $ 750 million, but the deal fell through. Curv uses multi-party computing for the security of its crypto assets, relying on math and code to secure funds.
The approach is similar to that used by Fireblocks, which is reportedly working with the oldest bank in the United States, Bank of New York Mellon (NYSE: BK), which is also implementing a cryptocurrency custody service.