Paypal’s first major investment in blockchain credits a startup known as Cambridge Blockchain
The American Company has finally cast its lots for Blockchain, and just like every other brand involved, the financial firm has finally boarded the moving train. Paypal seems to have seen the hidden truth about the cryptocurrency, and instead of investing in the currency, it has rather chosen to fund a blockchain-oriented startup.
The payments giant has invested in Cambridge Blockchain, a budding startup developing digital identity management software for financial institutions. While this is coming as a shocker to many, the announcement was first sighted on the startup web page, saying that the investment is a win-win situation for both companies. However, Paypal may not be the only company on the list of investors for the startup- the list also includes Foxconn’s HCM Capital, Partech Partners, FuturePerfect Ventures and Digital Currency Group who are also reportedly part of a ‘Series A funding’ in the startup company.
“We made an investment in Cambridge Blockchain because it is applying blockchain for digital identity in a way that we believe could benefit financial services companies including [ourselves],” a PayPal spokesperson told CoinDesk.
PayPal has invested an-as-yet undisclosed sum, Coindesk reports. Cambridge Blockchain initially closed its Series A funding round last May after raising $7 million.
However, according to documents filed with the Securities and Exchange Commission (SEC), the blockchain startup has raised a further $3.5 million from a number of other investors over the last nine months, and that may include PayPal funding, along with Omidyar Network, eBay’s philanthropic investment arm; Flourish, Omidyar’s fintech investment arm; and Future/Perfect Ventures.
With the record, Paypal is obviously not the major but one of the several investors, however, this marks its first major investment in the cryptocurrency business. Although the company claims to be one of the companies that enables merchants to accept Bitcoin through its partnership with BitPay, GoCoin, and Coinbase.
PayPal seems to be very careful about its investment into the cryptocurrency business to have only invested a few bucks in the startup Cambridge Blockchain. Meanwhile, Bitcoin seems to be doing well lately, as a major bump in value (of up to $700) was noticed earlier.