PayPal is exploring purchases of cryptocurrency companies including bitcoin custodian BitGo, Bloomberg reported, citing people familiar with the matter.
- The news comes a day after the payments giant announced it's entering the cryptocurrency market.
- BitGo was the first U.S. crypto firm to secure a broker-dealer approval, transfer agent registration and trust company recognition, allowing it to provide custody and record-keeping services.
- Given that the mechanics of PayPal's new crypto offering would in effect make it a custodian, it would explain the company's reported interest in BitGo.
- "Talks could still fall apart and PayPal could opt to buy other targets," Bloomberg quoted one of its sources as saying.
- BitGo CEO Mike Belshe declined to comment on the report. An email to PayPal requesting comment wasn't immediately answered.