PayPal makes strategic investment in blockchain company to focus on user identity verification

The cryptocurrency market has been waiting for the most opportune moment to go mainstream while banking on investments from institutions and mainstay organizations. The latest organization to take another step forward in the cryptocurrency space is the Elon Musk-founded PayPal, with news coming in that the company is going to integrate blockchain technology to boost its identity ownership sector.

Reports stated that PayPal has joined a Series A investment in Cambridge Blockchain, a startup with the goal to let users control their online identity without the use of other parties to verify it. PayPal claimed that by tying up with Cambridge Blockchain, the payment service company will allow users to verify their identity without divulging any other private information.

A PayPal official speaking to Forbes had stated:

“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 PayPal.”

Cambridge Blockchain is currently working to transfer online identities to any suggested public or private blockchains while the San Jose based PayPal is more focused on financial applications. PayPal has been dabbling in the world of cryptocurrencies for some time now, with the company filing a patent for an “Expedited Virtual Currency Transaction System” in March 2018. The abstract of the patent read:

“Expedited virtual currency transactions are provided by identifying a first user primary wallet associated with a virtual currency and including a first user primary wallet private key.

The description continued:

“First user secondary wallets are created that each include a respective first user secondary wallet private key, and a respective virtual currency transaction is performed using the first user primary wallet private key to transfer predefined amounts of the virtual currency from the first user primary wallet to each of the first user secondary wallets such that first user secondary wallets are provided with different predefined amounts of the virtual currency.”

PayPal has largely been associated with Coinbase on a lot of occasions, as evidenced by the Brian Armstrong led company offering PayPal withdrawals for the EU and European Free Trade Association customers. Coinbase had also launched free PayPal withdrawals for fiat currencies a few weeks back without much fanfare. The move allowed users to withdraw crypto in fiat currencies such as the US Dollar, Euro, and Pound.

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