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Paypal is investing in a blockchain startup for the first time

Financial services provider Paypal participates in Cambridge Blockchain’s first round of financing. This was announced by Blockchain startup in a Monday press release. It is Paypal’s only stake in a blockchain startup so far.

Exact size of the investment of Paypal unknown

Paypal and Cambridge Blockchain have been silent about the size of the investment so far. However, recent filings with the US Securities and Exchange Commission show that Cambridge Blockchain has raised $ 3.5 million from various investors over the past nine months. This was followed in May last year, according to the entries, an investment in excess of 7 million US dollars, so that the investments total now 10.5 million US dollars.

The $ 7 million came from companies including HCM Capital and the Digital Currency Group. The remaining $ 3.5 million came from the Omidyar Network, a philanthropic investment firm owned by the eBay founder, and Paypal. This is the result of research by CoinDesk.

Cambridge Blockchain develops digital identity software

So even though Paypal’s investment has been modest, it’s still of symbolic significance. A Paypal spokeswoman explains to CoinDesk, “We’ve invested in the Cambridge Blockchain company because it uses blockchain technology for digital identities in a way that we think the financial services sector can benefit from – and with it also Paypal. Our investment allows us to think about possible collaborations that will allow us to use blockchain technology. ”

The startup Cambridge Blockchain develops a digital identity software based on Blockchain, which specializes primarily in financial institutions. The software is intended to allow individuals to digitally identify themselves in front of institutions without losing control of their personal information. Cambridge Blockchain emerged from a small group of startups participating in Paypal’s accelerator program Fintech Europe 2018.


Also published on Medium.

Published inStartups
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