Paypal and BitGo Deal Failed

In October, there were rumors that PayPal was going to acquire cryptocurrency company BitGo. According to several sources, this deal will not happen. BitGo CEO Mike BELCHE noted that his company currently holds over $16 bln in crypto assets for its clients. BitGo's core offering is custody services, the secure storage of cryptocurrencies on behalf of institutions and other wealthy clients.

Belshe notes that BitGo is among the many companies that have benefited from the current Bitcoin bull market. But he says the crypto industry is facing challenges in building infrastructure, including security, as big companies like PayPal and Square move in to the field.

Regarding the rumors about PayPal, Belshe did not confirm them, but he said that BitGo has been "negotiating with everyone" for years and that the private company will not go for a "little exit." PayPal declined to comment on the acquisition talks. However, negotiations between BitGo and PayPal are known to have failed and PayPal is investigating other potential acquisitions.

Image: Coin Journal