PayPal has terminated acquisition talks with a bitcoin-focused custodian BitGo, Fortune has learned, citing sources familiar with the matter. While the reason remains unknown, BitGo CEO Mike Belshe said that the custodian is currently not profitable, as it is in "growth mode."
Discussions over the potential acquisition, which would have increased competition for PayPal on the cryptocurrency market, collapsed less than a month after they were reported by Bloomberg. Belshe declined to comment termination of talks with PayPal, but emphasized that BitGo has no plans to raise capital in the near future.
As of press time, BitGo hodls over $16 billion worth of cryptocurrency.
iHodl reported in August that BitGo may launch its own version of the Ethereum network for Wrapped Bitcoin (WBTC), a bitcoin version on ERC-20 protocol.
According to BitGo CTO Ben Chan, the custodian is trying to contact community partners to develop an Ethereum sidechain due to a sky-high rate of fees allegedly triggered by tether (USDT). Currently, BitGo secures over 75,000 WBTC.
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