Paypal earlier in the year enabled buying, selling and storing of digital assets and fiat currencies on its platform. This fueled rumours that it was interested in taking over a crypto firm, with BitGo named favourite.
According to Fortune that interviewed Mike Belshe, BitGo CEO, they revealed that the deal was no longer going to happen.
The CEO noted that the company has been talking to many firms throughout the year. He noted that BitGo was not accepting a ‘small exit.’
Sources close to both Paypal and BitGo also have said that talks between Paypal and the crypto firm was not progressive. The payment firm is even said to have furthered its search for a firm it can potentially acquire.
Belshe stated that the crypto firm is not very profitable at the moment because it is still growing. However, he says the firm balance sheet is healthy, he says. He notes they don’t plan to raise any capital anytime soon also.
BitGo in a glance
The crypto firm undoubtedly is one of the earliest crypto firms in the US after it launched operations in 2013. However, it has been overshadowed by other crypto firms like Coinbase, Kraken.
Coinbase, Kraken offers a platform for anyone to buy or sell digital assets, while BitGo’s core offering is a custody service for institutions and other wealthy clients.BitGo securely stores crypto on behalf of its clients.
The firm has tried redefining its position in the industry while offering other tax and lending services and becoming a platform for users to engage discreetly on large sales.
However, the CEO notes that the entrance of PayPal, Square is now threatening them into the crypto space as he acknowledges that their firm already benefited from the current Bitcoin bull market.
What next for Paypal
After a breakdown in negotiation between Paypal and Bitgo, the payment firm failed to shed light into the issue.
No statements, tweets or any form of update as regards the acquisition from their part yet. However, close sources to the payment firm stated that PayPal is exploring other potential acquisitions.