PayPal Holdings (NASDAQ:PYPL) is acquiring a new asset. The company announced Monday that it has agreed to purchase Curv, a privately held digital asset security specialist based in Israel. It did not disclose either the price or the terms of the deal, but did say it expects the transaction to close by the end of June.
Curv focuses on security solutions (delivered via cloud computing) for the blockchain, the digital technology that is at the root of cryptocurrencies. It was formed in 2018 by two veterans of both private and public sector cybersecurity organizations in Israel. Because of its geopolitical position, security is a priority in the country, with cybersecurity being a modern aspect of this concern. As a result, Israeli cybersecurity experts are considered to be among the best in the world.
Last October, PayPal plunged deep into the cryptocurrency market when it announced it would allow users of both its PayPal and Venmo payment services to trade in "cryptos" such as Bitcoin. While we can't ascertain whether buying Curv is a bargain since the price isn't being disclosed, it's obviously a complimentary asset that should strengthen PayPal's efforts in the cryptocurrency sphere.
Subsequent to its cryptocurrency rollout, PayPal formed a division for its digital currency and blockchain assets. Curv will be folded into that unit.
PayPal quoted its general manager of blockchain, crypto and digital currencies Jose Fernandez da Ponte, as saying, "The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system."
Investors might not be seeing it that way, however. On Monday, PayPal's stock closed the day 5.4% lower, a far steeper decline than the 0.5% of the S&P 500 index.