PayPal has announced its plans to acquire Curv, an Israeli provider of cloud-based infrastructure for cryptocurrency security.
The Tel Aviv-based company, which was founded in 2018, is set to join PayPal’s newly-formed business unit that will focus on blockchain, crypto and digital currencies.
With the help of its “strong team of technologists”, Curv is to strengthen the new unit with its technical expertise.
PayPal announced that the acquisition is in line with its “commitment to help shape the role that digital currencies will play in the future of financial services and commerce”.
In October 2020, the company launched a service that allows customers to trade and exchange cryptocurrencies including Bitcoin, Ethereum, and Litecoin directly from their account and through compatible merchants. The move was hailed as a significant moment in continued efforts to bring cryptocurrencies into the mainstream, due to PayPal's position as one of the most popular online financial services.
Jose Fernandez da Ponte, PayPal’s VP and GM of blockchain, crypto and digital currencies, described the acquisition of Curv as “part of [PayPal’s] effort to invest in the talent and technology to realise 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,” he added.
Curv CEO Itay Malinger, who co-founded the startup alongside CTO Dan Yadlin, said that Curv is “proud to be recognised 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.”
The acquisition is expected to be completed in the first half of 2021, with financial terms of the deal not disclosed to the public in the time being.
PayPal isn’t the only financial service to be moving towards cryptocurrencies. Last month, Mastercard announced plans to start supporting select cryptocurrencies sometime this year, on the conditions that they prove to be secure, compliant with industry standards and regulations, as well as proving stable enough to be used as a "vehicle for spending".
However, the company has strongly suggested many of the most mainstream assets, such as Bitcoin, won’t make the cut.
