PayPal, which caused a surge in Bitcoin valuation when it enabled cryptocurrency transactions on its platform in October of 2020, is acquiring the start-up Curv, which has raised over $29M to develop its digital wallet platform technology. Curv uses multi-party computation (MPC) to encrypt on the blockchain, thus eliminating the need for private keys. The start-up has one patent application covering its core technology, which likely aided in the acquisition by filling a gap in PayPal’s patent portfolio. PayPal currently has four patent applications relating to cryptography, but only one of these appears to be relevant for payment systems and uses private as well as public keys. Another company that may be of interest for partnership is Ripple Labs, which has patented quantum-proof public key cryptography. The move suggests that PayPal is expanding its exclusive rights and blocking competition with its growth strategy. Early stage companies with key technology like Curv who have established working systems with intellectual property coverage are attractive M&A targets. Cryptography is a large subcategory of cryptocurrency inventions, with over 400 patents and applications. Who will be next? Monitor early stage and disrupters by subscribing to the Cryptocurrency Patent Forecast®.
