Online payment service PayPal has announced it will acquire cryptocurrency security firm Curv as part of its push into digital tokens.
Curv is a technology firm engaged in the secure storage of Bitcoin and other cryptocurrencies. The company operates a cloud-based service that lets you access your crypto wallets without any hardware device. Users can always access and transfer their funds to any wallet or service provider.
The company uses “multi-party computation” which “eliminate the concept of private keys, signing each and every transaction in a secure, distributed way to protect against cyber breaches, physical damage, and insider collusion,” according to Curv.
Multi-party computation shops like Curv are in short supply in the cryptocurrency industry but are valued by larger companies trying to grow their involvement in the cryptocurrency world. It is reported that Curv previously rebuffed an offer to be acquired by Facebook’s crypto arm, Novi.
The deal is reportedly worth less than $200 million despite claims that Curv’s price tag is between $200 and $300 million and initial reports that PayPal was buying Curv for $500 million.
“As a pioneer in security infrastructure for digital assets, Curv is proud to be recognized as an innovator and trusted partner to leading financial institutions around the world. Now, as the adoption of digital assets accelerates, we feel there’s no better home than PayPal to continue our journey of innovation. We’re excited to join PayPal in expanding the role these assets play in the global economy,” said Curv CEO Itay Malinger.
The deal will help PayPal further its role in the burgeoning cryptocurrency industry. In October 2020, the company announced the launch of a new service enabling its customers to buy, hold, and sell cryptocurrency directly from their PayPal account. The move signaled PayPal’s plans to significantly increase cryptocurrency’s utility by making it available to customers as a funding source for purchases at the 26 million merchants worldwide that accept PayPal.
At the time, PayPal called the shift to digital forms of currency inevitable and highlighted the financial inclusion and access the currency brings to users.
The service enabled customers to use bitcoin, ethereum, bitcoin cash, and Litecoin through the PayPal service and hold the currencies in their digital wallets. PayPal made the service possible through a partnership with Paxos, a Blockchain infrastructure platform.
“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system. During our conversations with Curv’s team, we’ve been impressed by their technical talent, entrepreneurial spirit, and the thinking behind the technology they’ve built in the last few years. We’re excited to welcome the Curv team to PayPal,” said Jose Fernandez da Ponte, vice president and general manager, blockchain, crypto, and digital currencies, PayPal.
PayPal plans to roll out the crypto features to its Venmo mobile wallet and international markets in the first half of 2021.
Other companies are making similar efforts to PayPal in the cryptocurrency market. Twitter CEO Jack Dorsey’s financial technology firm Square has long offered cryptocurrency services, and recently bought $50 million in bitcoin. Fidelity, a major investment manager, set up its own crypto division last year. Facebook and a number of other tech companies have recently begun working on a digital currency called libra that the companies hope will enable cheaper and faster cross-border payments.
