PayPal has dropped its bid to acquire bitcoin wallet purveyor BitGo but remains interested in investing in the cryptocurrency space, Fortune reported.
PayPal’s pursuit of BitGo became public in October, though neither company would confirm they were holding talks.
At the time, according to Bloomberg in a contemporaneous report, proponents of a deal were suggesting such a move would help PayPal grow in the digital coin realm.
PayPal had just announced that beginning in 2021 it would let customers transact in a number of cryptocurrencies, among them bitcoin, Ether, Bitcoin Cash and Litecoin.
PayPal’s move, given its size and clout, is an important indication that cryptocurrencies are poised for more mainstream adoption, Daniel Gouldman, chief executive of crypto-banking platform operator Ternio, told PYMNTS’s Karen Webster.
“I think ultimately, the digital dollar is going to become a thing, and that is going to allow for better, cheaper, faster payments. It’s going to completely change the way we interact with money in a way that I don’t think we’re used to, because we’re so used to banks,” Gouldman said.
Although BitGo is one of the early big players in cryptocurrency, the company has carved a niche largely out of public view. Many of its customers are institutions and wealthy individuals.
Forbes reported just before Christmas that BitGo Chief Executive Mike Belshe had recently said the company is holding cryptocurrency worth $16 billion for customers and was adding several clients of means each week.
Forbes reported that BitGo recently has “aggressively sought to redefine itself as a full-service crypto shop that offers other tax and lending services, as well as a means for clients to discreetly arrange large trades.”
Bloomberg reported earlier this year that BitGo’s backers include Goldman Sachs Group Inc., Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, Valor Equity Partners and Founders Fund.
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