Payment giant PayPal made the first investment in a startup working with blockchain technology, CoinDesk reports.
The American company has joined the extended round of financing of the A Series of the Cambridge Blockchain startup, which helps financial institutions and other organizations manage confidential data through distributed registry technology.
Participants of the deal did not disclose information on the amount of investment. However, according to recently filed documents with the Securities and Exchange Commission, in the past nine months, Cambridge Blockchain has raised $ 3.5 million from various investors, including PayPal and the Omidyar Network.
Prior to this, a startup raised $ 7 million from the venture division of Foxconn Technology Group, Partech Ventures and Digital Currency Group. Thus, the total amount attracted by the Cambridge Blockchain venture capital investment is $ 10.5 million.
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.
The former head of PayPal, Bill Harris, has repeatedly harshly criticized Bitcoin, calling it "a zero-value cult", and arguing that the first cryptocurrency involves inexperienced buyers in the "spiral of greed."