PayPal to Acquire Cryptocurrency Security Firm Curv

PayPal has revealed its intention to acquire Curv, a cryptocurrency startup headquartered in Tel Aviv, Israel. Initial reports regarding this acquisition surfaced in the Israeli newspaper Calcalist, and have now been officially confirmed by PayPal.

About Curv

Curv specializes in providing robust security solutions for cryptocurrency assets. The company delivers a cloud-based platform enabling secure access to crypto wallets without the need for physical hardware devices.

Furthermore, Curv facilitates the implementation of intricate security protocols. These protocols allow organizations to establish approval workflows, preventing unauthorized withdrawals, such as those initiated by new employees.

How Curv's Technology Works

At its core, Curv employs multi-party computation to safeguard private keys. When a wallet is created, cryptographic secrets are distributed between the user’s device and Curv’s servers.

Transaction initiation requires the combined use of multiple secrets to generate the necessary public and private keys. This system ensures that compromising a single secret does not grant access to funds.

Secrets are regularly rotated, and no single secret holds sufficient information for unauthorized access. This design mitigates the risk of fund theft even if a device, like a laptop, is compromised.

Curv’s Target Audience

It’s important to note that Curv doesn’t cater to individual cryptocurrency users. Instead, the company provides its services to cryptocurrency exchanges, brokers, and over-the-counter trading desks.

Investment funds intending to make substantial cryptocurrency purchases may also benefit from utilizing Curv’s security infrastructure. Financial institutions seeking to incorporate digital assets into their portfolios can also explore a partnership with Curv.

PayPal’s Cryptocurrency Strategy

PayPal has stated that the Curv team will be integrated into its existing cryptocurrency division. The payment processing giant has been progressively expanding its cryptocurrency offerings.

Through a partnership with Paxos, PayPal currently enables users in the United States to buy, sell, and hold cryptocurrencies directly within their PayPal accounts.

Future plans include allowing users to utilize cryptocurrencies for purchases. The company also intends to extend its cryptocurrency services to additional countries and integrate them into Venmo, its popular fintech application.

Deal Details

The financial terms of the acquisition remain confidential. The transaction is expected to be finalized sometime during the first half of 2021.

Initial reports from Calcalist suggested a valuation between $200 million and $300 million. However, sources close to the company indicate the final transaction value was less than $200 million. Further details are anticipated in upcoming earnings reports.

Early Stage Event Information

Early Stage is a leading event designed to provide practical guidance for startup entrepreneurs and investors. Attendees will gain insights from successful founders and venture capitalists regarding business development, fundraising, and portfolio management.

The event covers all critical aspects of company building, including fundraising strategies, talent acquisition, sales techniques, achieving product-market fit, public relations, marketing, and brand development.

Each session incorporates dedicated time for audience participation, fostering interactive discussions and allowing attendees to directly address their questions to the speakers.