PayPal Shows Its Cards With Crypto Security Firm Acquisition!
Why would an online payments processor purchase a crypto security firm?
Because PayPal is an innovate company with a vision of the future that includes mass adoption of crypto!
That and they'll be in custody of boat loads of crypto if not already but even more so as they move into the future with their digital payments business.
Funds Are SAFU
PayPal is acquiring digital asset security company Curv.
Security is a big deal for any company in possession of assets that are valuable, this includes intellectual property, cash, raw materials, stock, property, and intellectual property.
Some companies are now adding crypto to that list!
Like other assets it's critical that it's secured and meets the needs of your businesses risk management framework.
If you're a payments processor that's likely going to be in custodial passion of massive amounts of crypto it's doubly important.
It's possible to hire out to another financial institution for custodial services but if you're keen on having the knowledge and skills in house, and to possibly make it a core element of your business, then an acquisition makes sense.
Curv - The Institutional Standard for Digital Asset Security
The acquisition of Curv brings digital asset security talent and expertise in house, I think this is a great investment.
Reports indicate that the acquisition will cost less than 200M, and everyone gets to keep their jobs!
I'm hearing the team at Curv gets to stay on, this tells us that PayPal was interested in both the tech and the team.
What does Curv bring?
We saw the promise of blockchain, but knew if that promise was to be realized, we had to eliminate the single point of failure introduced by private keys. Our unique expertise in cryptography and cloud security allowed us to create a secure, distributed architecture for signing transactions. This allows any institution or enterprise to quickly and easily hold and exchange digital assets on public or private blockchains without managing private keys on outdated physical infrastructures.
"The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision of a more inclusive financial system," -José Fernández da Ponte, VP of blockchain at PayPal.
PayPal Is Going For It!
PayPal has been in the crypto space for a number of years, offering some services to limited regions but has not yet opened up a global crypto payments system for its network of 20+ million active merchant accounts.
It's only a matter of time, welcome to the future!
PayPals share price (PYPL) made gains of more than 100% in 2020 alone, and I think this acquisition speaks volumes to how the company is positioning it's self for the future.
PYPL is currently trading around $244 USD on the Nasdaq. Is PayPal a company who valuation could do a 10x in the next decade?
It's already a house hold name with more than 300 million users globally. Clearly they're positioning themselves to be a dominant player in the crypto payments processing space. Here's hoping 2 + 2 still equals 4.
Ciao for now,
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hahaha the same company that banned people for using cryptos :P
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Unfortunately PayPal is not permissionless. But hey there's alternatives emerging all around us!
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I am sure when paypal enters crypto space with all its offerings, the scenario of converting fiat to crypto would change drastically
Totally could! Curv could totally be part of that. I think right now the meta is swaps, which is a decent UX so far. will be interesting to see if they can innovate further on payments.
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Very interesting development.. glad to be seeing way more realistic use cases and adoption during this bull cycle than back in the day, when it was mostly hype xD. However, I don't see us getting to completely widespread adoption during this cycle, but maybe in the next in 2025 or so.
Of course it's always the disclaimer — unless the entire global fiat system collapses — but people have been claiming that was imminent for decades.
Totally agree with you on these points!
Such a difference in projects and businesses this cycle vs last, when it was mostly just ideas and whitepapers and tons of speculation. Still speculation today but obviously we're now seeing actual products with their use cases.
At this point the 2025 cycle is also my guess for some kind of tipping point to mainstream adoption. And in some way, shape, or form it will probably also differ from the 2017 and 2021 cycles.
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Great news! Thanks for sharing
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