04 Apr 2019 Samantha McLauren
PayPal Enters The Crypto Train With First Significant Investment
PayPal, known for its former CEO and founder Elon Musk, has made a considerable investment into Cambridge Blockchain – a fintech startup, specializing in digital identity management for large customers.
Cambridge Blockchain has announced on their website that the investment from PayPal would deliver close cooperation in the blockchain technology realm between the startup and the money transfer giant.
PayPal invested during a Series A fundraising round. Other investors include FuturePerfect Ventures, Paratech Partners HCM Capital and Digital Currency group.
One of PayPal’s officials stated that the investment is a strategic move, which will enable digital identity companies to develop products and services, aiding financial services providers. Although the exact numbers of the investment are still unknown, Cambridge Blockchain managed to raise $7 million during the Series A funding campaign.
SEC documentation shows that further $3,5 million have been raised from other investors in just nine months. The additional fund comes from companies like PayPal, FuturePerfect Ventures and Omidyar, resulting in over $10 million in investments.
And although PayPal is not the biggest investor in the blockchain startup, the company is making its first significant investment in the crypto sector. This move means more and bigger players are adopting cryptocurrencies and the underlying blockchain technology.
PayPal’s moves toward cryptocurrencies date back to March 2018, when PayPal executives filed patent documentations regarding a “virtual currency transaction system”. The payment protocol would enable faster digital currency payments.
PayPal is also one of the first payment providers to accept Bitcoin in a partnership with Coinbase, GoCoin, and BitPay. BitPay also gave a helping hand into PayPal’s decision to enable instant cash withdrawals to US citizen.
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