PayPal has reached out to a number of cryptocurrency companies, including Bitgo

On October 23, Bloomberg reported that PayPal is in talks to acquire BitGo and other cryptocurrency companies, and is expected to reach an agreement with BitGo within weeks, according to people familiar with the matter. “The talks could still fall apart and PayPal could choose another acquisition target,” said one person familiar with the matter.

BitGo, an encryption hosting company, raised 58.5 million U.S. dollars in 2018 with a valuation of 170 million U.S. dollars, according to data. Redpoint Ventures, Goldman Sachs, Digital Currency Group and other well-known companies participated in the investment.

Back in June, Coindesk reported that PayPal was planning to launch a direct trading service for cryptocurrencies that would sell cryptocurrencies directly to its 325 million users and launch in the next three months or earlier, people familiar with the matter said.

PayPal announced on Wednesday that its customers would be able to buy, sell and hold cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash and Litecoin, from digital wallets, and use the virtual currency to make purchases at 26 million merchants on its network, BitTorrent reported.

In addition, PayPal’s second-quarter 2020 results released at the end of July showed that net sales in the second quarter rose 22% year-on-year to USD 5,261 million, while net profit rose 86% over the year to USD 1.530 billion.

PayPal is one of the most widely used online payment tools in the world. PayPal supports 25 major international currencies such as US dollar, Euro and Yen, and occupies a large market share in the global third-party settlement and payment platform of cross-border e-commerce.

PayPal has obtained a cryptocurrency license approved by the New York State Department of Financial Services, which will introduce cryptocurrency payment methods that allow users to buy and sell through PayPal accounts, hold cryptocurrencies and shop with 26 million merchants worldwide.

This move of Paypal will not only bring the application scenario of bitcoin shopping and payment in Paypal26 million merchants, but more importantly, it means that cryptocurrency represented by Bitcoin is being recognized by the mainstream business community, so it is an absolute positive for Bitcoin.