PayPal recently took its first step investing in the blockchain for the first time and believes that the application of new technologies at the digital identity level will benefit a number of financial service companies such as PayPal.
The startup that was invested this time is Cambridge Blockchain, which uses blockchain technology to manage sensitive materials for financial institutions and other companies. Neither PayPal nor Cambridge Blockchain disclosed the investment amount, but according to the data of the US Securities and Exchange Commission, the company raised $3.5 million in the past nine months.
Foxconn, Partech Ventures, and Digital Currency Group also participated in the financing last year, when they raised about $7 million. A PayPal spokesperson confirmed that this is the first time that PayPal has invested in a blockchain company. It also claims that the technology is used in digital identity and can benefit a number of financial services companies.
PayPal’s believes the market is in need of user privacy thus responding to growing user privacy. The EU Personal Data Protection Act GDPR was implemented in May last year, with a maximum fine of 20 million euros or 4% of global turnover. Companies from all over the world are watching how to comply.