PayPal Steps Into the Blockchain Investment Game Pumping $3.5 Million In Cambridge Blockchain
In an apparent first, global online payments platform PayPal has invested in a blockchain startup dubbed Cambridge Blockchain. The blockchain startup leverages the distributed ledger technology to give people a better control over their digital identities.
Also, it helps financial companies to organize and manage sensitive data using shared ledgers. Neither of the two companies have spoken explicitly on this matter. However, the SEC filing puts some light on this matter.
According to the SEC filing, Cambridge Blockchain has raised over $3.5 million in new equity over the last nine months. This fundraising was followed by a $7 million investment in Series A round taking the total capital raised to $10.5 million. PayPal, however, contributed 50% i.e. $3.5 million during the Series A round. This was the first investment by the payments giant in any blockchain company.
Matthew Commons, CEO of Cambridge Blockchain said that PayPal was indirectly involved with the startup for the last one year. Like for example, Cambridge Blockchain was part of the startup consortium in the “Fintech Europe 2018” accelerator program which was sponsored by PayPal.
Furthermore, both PayPal and Cambridge Blockchain have their presence in Luxembourg. Matthew Commons said: “We can’t talk specifically about anything commercially that we are doing because it’s all sort of exploratory now, but I think the fact that we are deployed in Luxembourg and they [PayPal] have a major presence there also helped to get things moving.”
However, it was by the end of 2018 where Cambridge started directly working with PayPal and was successful in pulling this massive investment. A number of companies across the globe have recently participated in blockchain-based ID verification program.
Moreover, for online payment companies like PayPal, these companies play a crucial role in streamlining their business process.