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.

Read more: Baby Steps or Handcuffs? Crypto Pros Assess PayPal’s Bitcoin Play

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