PayPal Invests In Blockchain Startup For First Time
The well-known payment company PayPal has made its first investment in a startup that works with distributed ledger technology, CoinDesk reports.
The online payment giant has supported the Cambridge Blockchain project by joining its Series A financing stage. The startup is developing blockchain for financial institutions, helping them manage confidential information through a decentralized system.
Neither side specifies exactly what amount PayPal has invested in the project. According to Crunchbase, Cambridge Blockchain attracted $3.5 million in April 2019 and gained $7 million in May last year. Thus, the startup collected $10.5 million investment in total.
Other investors of the blockchain project include Digital Currency Group and the venture capital firm Foxconn, which manufactures smartphones for Apple. It is noted that PayPal's contribution looks rather modest against this background but has a symbolic meaning.
The payment giant decided to invest in this startup, since Cambridge Blockchain uses DLT for digital identification, which can be useful for the financial services industry and for PayPal in particular, according to the press service of the company.
It should be noted that Bill Harris, the ex-head of PayPal, criticized bitcoin last summer, considering transactions with it useless. According to him, the main shortcomings of the first cryptocurrency include the long time of operations, problems with scaling, and volatility. The businessman is also confident that the bitcoin rate will eventually be equal to zero, so using it to store personal funds is ridiculous.
Interestingly, a month before this announcement, EOS developers received investments from a PayPal co-founder, billionaire Peter Thiel.
Earlier, the eToro platform acquired the Firmo blockchain startup developing smart contracts.