Paypal has announced making its first foray into the blockchain industry, joining a series A funding round of Cambridge Blockchain.
Cambridge Blockchain is a new startup aiming to give its user control over their personal identity and other sensitive data, using the distributed ledger technology eliminating the risk of data leakage.
The identity startup plans to provide a way to avert the need for middlemen such that the user will have ownership of their data and personal identity used online.
Undisclosed Funding Raised
The amount invested during the Serie A funding process has not been revealed by the involved firms, but according to a recent SEC filing, the amount would be around $10.5 million.
Following the filing statement, $7 million has been raised during the first part of the seria A round which closed in May 2018 and $3.5 million during the recent extension that included Paypal’s funds.
Alongside Paypal, several investors showed were involved in the funding round for the startup project such as HCM capital, Venture capital arm of Foxconn ( iPhone manufacturer), as well as Digital Currency Group.
Paypal objective in its involvement in the project is to provide more comfort to its users by preventing pointless disclosure of data. This is especially important since its customers use its services online. Such improvement would have effects of reposing more confidence on the payment platform.
According to Paypal spokesman, Taylor Watson the firm is trying to explore profitable collaboration through this investment in blockchain-related startup. He added that it would have positive impacts for the firm in the future. according to him:
“We made an investment in Cambridge Blockchain because it is applying blockchain for digital identity in a way that we believe could benefit financial services companies including PayPal. Our investment will allow us to explore potential collaborations to leverage blockchain technology.”
Cambridge Blockchain plans now to hire and expand its team which is already composed of 15 people working from Boston, Paris and Beijing,
First Investment in Blockchain
It is the first step made by the financial service provider toward the blockchain technology. Last year, the firm was reported to have filed a patent around March 2018 for a project that aimed to speed up cryptocurrency transaction speed, but this funding is its first practical link with the industry.
With this announcement, Paypal shows clearly its will to make use of the blockchain technology in the near future. This is one partnership that we would be keeping an eye on as well.