After a few weeks of speculation, reports now show that PayPal is gearing up to buy Curv, a new secure crypto storage provider.
Experts believe that the price could go well into the hundreds of billions, with some saying that $500m is the target price.
It’s not necessarily known why this exact price is being targeted, but we do know that PayPal is not going to be stringent with the software it needs to activate its new innovations.
PayPal Entering the Crypto Market
In 2020, PayPal officially allowed several cryptocurrencies to be bought, sold, and held on their digital wallets. The coins include Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. It’s not yet known whether PayPal will expand this list and introduce additional options down the line.
But we do know what attracted it to Curv. According to a report from Yahoo Finance, the main goal behind the purchase is to overcome a difficulty plaguing cryptocurrencies since their first appearance, “private key.” The issue is that if the user loses their private key, it’s almost impossible to get a hold of their assets anymore. It would be a disastrous issue to have on a platform as large as PayPal. Luckily, Curv has solved this problem.
Everyone Wants a Piece of the Pie
PayPal being open about cryptocurrencies gives quite a lot of companies the go-ahead for implementing blockchain on their platforms. In the past, traditional companies would willingly abstain from things like Bitcoin due to either their customers not being aware of it enough or due to all the bad press.
Now, however, almost everybody has heard of BTC and knows more or less what it is. By having PayPal as their official gateway to crypto-assets, every financial company guarantees safety to their clients.
We can already see this trend forming in the trading sector. When in the past, brokerages had no real reason to partner up with PayPal due to their high fees, now they find themselves bombarded with requests from the clientele for crypto integration. Doing it on their own terms would not bring as much success as partnering with a company that’s already doing it. Therefore, the number of Forex brokers that accept PayPal has increased dramatically. Why Forex in particular? Mostly due to the much higher competitive base as opposed to stocks.
A majority of traders stick with a stockbroker for the entirety of their trading careers, while forex traders change them like they change their socks.
When is the Full Integration?
Once again, the purchase has not been confirmed officially. It’s just that all the evidence is pointing to it. But once it does happen, it’s likely that we won’t see a working prototype adopted on PayPal until the end of the second quarter of 2021, or maybe even the end of the year, depending on how fast negotiations will be wrapped up.
But regardless of timing, Curv will skyrocket to tech royalty while PayPal will have a reliable and useful feature on its already dominating platform.