PayPal announced that it bought the crypto security firm Curv.
The deal is the next proof that the giant’s ambitions for crypto integration are still growing. According to sources the Tel Aviv-based startup was bought for $200M. Some of the other deals made by PayPal during the last years include the coupon service company Honey for $4B in 2019 and the small business iZettle for (payments service) $2.2 billion in 2018.
Curv is a company that stores cryptocurrencies for banks, institutions and individuals against hackers. The startup uses a multi-party computation system or MPC to store the coins. The traditional storage techniques typically rely on scattering the key to a digital wallet in various places. Despite that, MPC relies on mathematics and cloud computing to prevent unauthorized access. The founder of Curve – Itay Malinger – is a veteran of web security. According to him the MPC technology offers both total security and easy access to crypto assets.
In an interview the VP of PayPal – Fernandez da Ponte – said that the order was not made with the goal of running a custody service and charging third parties to safeguard their assets. The technology will provide a security layer for PayPal’s own digital assets and to safely move them across borders.
“Imagine a world in which PayPal has different custody providers, and needs to move assets from one provider to another,” he said.
During the last year PayPal launched a crypto exchange allowing customers to buy and sell crypto through its platform. For now the service is available only in the USA. Many said that this move was motivated by Square’s application Cash app.