The financial services giant PayPal (NASDAQ: PYPL) is in talks to acquire cryptocurrency custody firm Curv, according to recent reports.
This latest development is a clear indication that PayPal, which entered the crypto space last year, wants to establish a bigger footprint in the nascent industry than it already has.
PayPal to buy Curv
An Israeli news outlet reported that Curv is being sold for anywhere between $200 million and $300 million but did not disclose the buyer.
PayPal is willing to pay as much as $500 million to buy the blockchain firm, according to a source who informed an industry news outlet.
“PayPal is buying Curv for $500 million,” the source said. “From where I’m hearing it, I’m pretty sure it’s true.”
The New York-based firm Curv was co-founded in 2018 by CTO Dan Yadlin and Itay Malinger, the CEO.
Curv has raised at least $30 million and secured $23 million in funding last July.
PayPal has shown interest in buying Curv after its plans to buy crypto custody firm BitGo last year fell through.
A deal that never was
There were reports last year that PayPal was interested in acquiring BitGo, one of the oldest companies in the crypto sector.
In an interview last year, BitGo CEO Mike Belshe pointed that the company holds more than $16 billion in cryptocurrency assets.
When asked about the PayPal rumors, Belshe gave a diplomatic response as he noted that the firm has been “in talks with everyone” over the years and was not going to settle for a “small exit.”
Despite the deal not going through, PayPal is determined to make a crypto acquisition amid the bull run.
“PayPal has made some great acquisitions in the past such as Venmo, and now they want to own something in crypto,” said the source.
PayPal recently partnered with Paxos, which powers the company’s cryptocurrency service features. The payments company initially allowed only its U.S. customers to buy and hold cryptocurrencies, and now this feature is being expanded to UK clients.
The payments company has ventured into crypto as Wall Street titans warm up to the industry.
What ‘major’ players are saying about bitcoin
JPMorgan, one of the largest investment banks in the world, recently said that investors can allocate 1% of their portfolio to bitcoin.
Within the same period, Citibank published a report in which it said bitcoin “could become the currency of choice for international trade.”
Goldman Sachs is restarting its cryptocurrency desk due to the market boom. According to analysts and enthusiasts, all these developments point to a growing market with an institutional appeal.