PayPal has decided to make an investment in its first blockchain project.
It is the Cambridge Blockchain startup, a company focused on disintermediation of digital identity ownership.
According to the report, the Cambridge Blockchain project in which PayPal has invested will allow its users to prove who they are while preventing personal information from being shared.
A PayPal spokesperson said:
“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”.
At the moment the amount of the total investment has not been disclosed, but it seems to be an extension of the financing round of the Cambridge Blockchain A series which was revealed last May 2018.
According to the report, from documents filed with the SEC, it could be deduced that $3.5 million of new shares were raised for the Cambridge Blockchain, following the first round of $7 million led by Foxconn’s HCM Capital.
In general, Cambridge Blockchain solutions leverage the potential of the DLT to deliver digital identities on a worldwide scale, meeting all global privacy obligations.
Moreover, the company has specific experience in designing software systems to share identity data between European financial institutions.
Matthew Commons, CEO of Cambridge Blockchain, confirmed that he had previously worked with PayPal on a project for Fintech Europe 2018, an accelerator that addresses the growing regulatory requirements related to data protection and privacy in general.
“We envision a future where users have a lot more direct control over their personal data, and we also believe in open, interoperable architectures,” says Commons. “We want to get away from a world where people are really locked into one specific platform and are stuck with that”.
In another interview he also stated:
“Our service helps streamline digital identity compliance while giving customers control over their identity data. We are honored by PayPal’s vote of confidence, and we look forward to their support and guidance”.