PayPal Makes First-ever Investment In Blockchain Technology

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PayPal has made an investment in Cambridge Blockchain, which is considered to be the first-ever investment by the online payments giant in a blockchain technology company.

In a statement, Cambridge Blockchain, a digital identity enterprise software startup, announced that PayPal has joined the extension of a Series A funding round. The companies did not reveal the investment amount, but said they will explore potential collaborations to leverage blockchain technology with the investment.

The extension of Series A funding round includes new investments from Omidyar Network and Flourish, a venture of The Omidyar Group.

As per the recent filings with the SEC, Cambridge Blockchain has raised a total of $3.5 million in new equity from several investors over the past nine months. The total capital raised was $10.5 million including the $7 million close of its Series A in May, 2018.

Previous Series A investors include Foxconn's HCM Capital, Partech Partners, Future\Perfect Ventures and Digital Currency Group. Foxconn is the manufacturer of the iPhone for Apple.

PayPal spokesperson reportedly told CoinDesk, "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."

According to Forbes, PayPal's only known involvement with blockchain earlier was a patent filed in March 2018. The patent was for a system to speed up cryptocurrency transaction rates and an internal project to incentivize employee participation using tokens issued on a blockchain.

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