PayPal has joined the extension of a Series A investment in Cambridge Blockchain, a blockchain startup.
Besides the investment, which is PayPal’s first blockchain investment, the corporation is planning on using Cambridge Blockchain’s software to allow users to verify their identities without the risk of personal data from being unnecessarily shared. Its core competency is the onboarding process of personal data and KYC vetting that is required to open bank accounts. It also helps manage sensitive supply chain data.
PayPal Considering Blockchain Development
Before today’s news, PayPal’s only relation with blockchain was through a patent filed in March 2018 to increase cryptocurrency transfer rates and a company project with the idea to incentivize worker participation exploring the issuance of tokens on a blockchain. However, today’s announcement presents a number of ideas what the future might hold for PayPal interms of blockchain development.
The investment becomes an extension of Cambridge Blockchain’s Series A funding round, which began on May 2018. It also includes a brand new investment from Omidyar Network. The amount has been disclosed neither from PayPal nor Cambridge Blockchain. Recent information obtained from the SEC has shown the startup obtained $3.5 million in new equity since the initial $7 million investment round led by Foxconn’s HCM Capital.
Blockchain to help users control their data
Currently, IBM, Mastercard, Microsoft, Cambridge Blockchain and some other companies have partnered with Decentralized Identity Foundation, a non-profit organization created with the idea of an ecosystem where people will obtain revenue from their own identities or decide where they can move their information. Last year in May, blockchain startup Blockstack created a $1 million fund to create a Facebook competitor. Paypal wants their investment to help explore potential partnerships to leverage blockchain technology.
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