Golden Outpost | PayPal is making another big move, buying Bitcoin custody company BitGo

There is no doubt that PayPal is making a massive foray into the cryptocurrency industry.

On October 21, the payment giant PayPal officially announced to join the cryptocurrency market, allowing customers to use the company's online wallet to buy, sell and hold Bitcoin and other cryptocurrencies. PayPal said in a statement that starting in early 2021, the company's users will also be able to use cryptocurrencies to shop at 26 million merchants on its network.

After the announcement of PayPal's support for Bitcoin, it triggered a strong rise in Bitcoin, and the price of BTC broke through $13,000, setting a new high since August 2019. Because the market generally believes that PayPal will bring a huge number of new users to BTC. According to Glassnode data, Bitcoin currently has more than 187 million users, while PayPal has 487 million users.

Analysis | Golden disk: NEO has a bottom divergence, pay attention to whether it can break through the upper resistance: comprehensive analysis of the golden disk: NEO is affected by the continuous bottom divergence and rebounds upwards, pay attention to the breakthrough of the $28 resistance at the top, only a breakthrough can open up the upward space, otherwise There are also downside risks. [2018/8/7]

The PayPal action apparently doesn't stop there.

On October 23, Bloomberg quoted people familiar with the matter as saying that PayPal was seeking to acquire BitGo, a Bitcoin custody company. According to people familiar with the matter, PayPal and BitGo have begun to communicate related matters, and the transaction may be concluded within a few weeks. But the talks could still fail and PayPal could choose to buy other targets. BitGo and PayPal declined to comment.

Jinse Finance live report Wu You, founding partner of Mirror Lake Capital: The way to make money in the blockchain industry in 2018 is layout: Jinse Finance live report, at the 2018 China Blockchain Summit Forum with a round table of "what attitude to embrace the blockchain" On the forum, Wu You, the founding partner of Mirror Lake Capital, said, “When I was an angel investor, I said that being a good person can change the world, but making money is a simple and rude thing. Making money is a trend, look for the trend, and adjust in time. Block To make money in the blockchain industry, you must enter the market, and the way to make money in the blockchain industry in 2018 is layout." [2018/5/20]

According to public information, BitGo raised US$58.5 million in financing in 2018, with a valuation of US$170 million. BitGo currently supports custody of 250 cryptocurrencies. More than 150 exchanges including Huobi, Coinbase, OKEx, and Binance use BitGo’s custody service, and more than 300 institutional investors are its custody customers. In addition, BitGo is also one of the initiators of WBTC.

Jinse Finance live report Yuan Dao, Chairman of Zhongguancun Blockchain Industry Alliance: Public chains and hundreds of chains will be issued together, and encrypted tokens will compete freely: Jinse Finance live report, at the 2018 Blockchain Technology and Application Summit, Zhongguancun Blockchain Industry Yuan Dao, chairman of the alliance, put forward several propositions of the Token faction: Token applications are the core driving engine, and Token + real economy is the real blue ocean; public chains and hundreds of chains are issued simultaneously, and encrypted tokens will compete freely; Dapp applications will move towards multi-chain and cross-chain; tokens will freely choose different public chains (or even a group of encrypted tokens) as their value anchors; token issuance, exchange transactions, appreciation and depreciation (including short selling), for people and people Strong collaboration and large-scale collaboration provide a very sophisticated and feasible economic incentive system; the financial disruptive innovation boundary of the pass-through economy, at least to keep AML+KYC. [2018/3/30]

The partner who provides encrypted asset services for PayPal this time is Paxos. Through Paxos' crypto asset custody and trading services for PayPal, PayPal enables U.S. users to buy, hold and sell crypto assets directly from the PayPal e-wallet. Through cooperation with Paxos, Paypal obtained a "conditional" BitLicense license from the New York Department of Financial Services (NYDFS) on October 20.

It is reported that the Bitlicense license was launched by the New York Department of Financial Services (NYDFS) in 2015. It is the most difficult cryptocurrency regulatory license in the United States. Currently, only 24 companies have been issued this license. Based on this, the New York regulator launched a "conditional" BitLicense as a temporary solution. To obtain this license, the applicant company must cooperate with a company that has obtained a full BitLicense license.

PayPal stated in a statement that currently users are limited to holding or purchasing cryptocurrencies on Paypal. The cryptocurrency payment function will be unveiled as soon as 2021. The service will be provided by its subsidiary Venmo. Merchants can accept users’ cryptocurrency payments through PayPal, but Merchants will still receive fiat currency, and PayPal will handle the intermediate exchange rate calculation and currency conversion process.

PayPal has a deep relationship with Bitcoin. In 2011, because PayPal refused to provide services to WikiLeaks, Assange turned to bitcoin donations, making bitcoin out of the circle once. It was also this time that Bitcoin attracted large-scale attention, and the founder of Bitcoin, Satoshi Nakamoto, decided to leave Bitcoin incognito.

Tags：

DAI