PayPal announced announced the aquisition of Tel Aviv-based startup Curv, which uses a novel form of cryptography to safeguard customers’ stashes of Bitcoin and other digital assets.
PayPal did not disclose financial terms in the press release announcing the Curv deal ,but a person close to the company told Cryptocor it was for nearly $200 million.
The deal is the first big crypto and latest acquisition for PayPal, which bought coupon service Honey for $4 billion in late 2019 and small business payments service iZettle for $2.2 billion in 2018.
Curv is one of a growing number of companies, including Anchorage and BitGo that help banks and others protect their crypto holdings from hackers and is a considered to be a pioneer in using multi-party computation or MPC to safeguard the holdings
According to an interview with Decrypt, Jose Fernandez da Ponte, VP and General Manager of PayPal’s blockchain and digital currency group, said that PayPal has been in talks with Curv for nearly a year. He added that Malinger will stay on at PayPal, but that PayPal is not disclosing specific titles or roles.
Fernandez da Ponte emphasized that PayPal is not acquiring Curv with the goal of running a custody service. Instead PayPal will rely on Curv’s technology to provide a security layer for PayPal’s own digital assets, and to safely move them across borders.
While PayPal’s cryptocurrency service is currently only available in the US, the comment points to how the company is not just planning to expand its retail crypto offerings, but to deploy crypto’s underlying technology—blockchain—on a global scale.