PayPal has made its first-ever blockchain investment. On Tuesday, Cambridge Blockchain announced that PayPal has joined its Series A funding round along with several other companies. According to Cambridge, this isn’t just an investment: the company says that this could lead to “potential collaborations” with PayPal.
PayPal itself has acknowledged that cooperation could take place. According to a PayPal spokesperson contacted by Coindesk, PayPal invested in Cambridge because it believes its identity services could benefit PayPal and other companies. She also stated that the two companies will “explore potential collaborations.”
Blockchain, Not Payments
Contrary to what PayPal’s involvement might suggest, Cambridge’s products aren’t directly related to payment processing or cryptocurrency transactions. Instead, Cambridge is producing a blockchain platform that manages user identities, similar to Civic. This is useful to financial services companies that must identify their users—such as banks, exchanges, and,…