PayPal to Acquire Crypto Security Company Curv to Further Its Push Into Cryptocurrencies

PayPal Holdings Inc. said it will acquire the cryptocurrency firm Curv as it seeks to beef up its talent pool for handling digital currencies. PayPal, which didn’t disclose financial terms of the deal, has been building out a new unit dedicated to furthering its efforts in cryptocurrencies after it began allowing consumers to buy, sell and hold certain digital currencies in its wallet in recent months. Curv, with about 40 employees, will join that team, the payments giant said Monday in a statement.

The deal is worth less than $200 million, a person familiar with the matter revealed in a report. It’s expected to close in the first half of 2021. Shares of PayPal were down more than 1% Monday morning. Founded in 2018, Curv provides companies with digital asset security technology that’s delivered as a cloud service. PayPal said the deal will help “accelerate and expand” its supporting of cryptocurrencies and digital assets.

“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system,” Jose Fernandez da Ponte, PayPal’s vice president and general manager, blockchain, crypto and digital currencies, said in the statement. “During our conversations with Curv’s team, we’ve been impressed by their technical talent, entrepreneurial spirit and the thinking behind the technology they’ve built.”

The deal comes just a few months after the company affirmed its commitment to the fast-growing segment, saying in October the shift to tokens is “inevitable.” PayPal also recently created a new business unit focused on blockchain, crypto, and digital currencies. Curv will join that newly formed group, PayPal said.

“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system,” PayPal’s Jose Fernandez da Ponte said in a statement. PayPal said it expects the acquisition to be completed by midyear. Last year, Curv announced it had raised $30 million in total funding from investors including CommerzVentures, Coinbase Ventures, and Digital Currency Group.