The online payment service Paypal underpins its ambitions in the field of cryptocurrencies with another takeover and swallows the crypto-security company Curv. Although this strengthens the tech company's commitment to the booming market for digital currencies, investors initially reacted cautiously to the announcement.
Paypal began entering the crypto world in October 2020. Since then, the company has been offering trading with Bitcoin and Co via its app and has founded its own division around blockchain, crypto and digital currencies. This is now getting a new addition: the online payment service announced the acquisition of the crypto company Curv on Monday.
"The acquisition of Curv is part of our effort to invest in talent and technology to realise our vision of an inclusive financial system," said Jose Fernandez da Ponte, vice president and head of Paypal's new crypto division. The aim is to "accelerate and expand" its own activities in the field of cryptocurrencies and digital assets, he said.
The acquisition is expected to be completed as early as the first half of 2021. The two companies did not disclose the financial details of the deal in their statement. However, CNBC, citing insiders, reports a purchase price of "less than $200 million".
What is Curv?
Curv was founded in Tel Aviv in 2018 and primarily develops cloud-based security infrastructure for the safekeeping of digital assets for other companies. Curv's technology provides financial institutions with a high level of protection while ensuring rapid availability of their assets, according to a company presentation.
The crypto market around Bitcoin and Co is currently experiencing unprecedented demand from institutional and private investors. Although the share is trading around one per cent down on Monday in the persistently difficult environment for tech stocks, courageous investors can take advantage of a stabilisation to enter the market. Those who are already invested should stick with it.
