Why an analyst thinks Thorchain will benefit from a PayPal BitGo acquisition

The biggest crypto news event of the last day is the report from Bloomberg that PayPal is looking into acquiring BitGo, one of the industry's leading digital asset custodians.

The outlet reported that "People familiar with the matter" indicate that PayPal is looking to acquire a "Number of" crypto firms, namely BitGo.

While no details were confirmed and PayPal did not comment on the story, many have begun to speculate what such an acquisition would mean for the industry.

Naturally, some have wondered what effect it will have on DeFi.Thorchain could benefit from BitGo acquisition by PayPal.

"There goes wBTC. The majority of wrapped Bitcoin is custodied by BitGo. PayPal is not a good actor in this space. Position accordingly."

THORChain's comment is an insinuation that PayPal may seek to use BitGo's influence over WBTC in some way.

Google Payments employee Tyler Reynolds, who moonlights as a crypto analyst on Twitter, made a direct comment that this acquisition should help THORChain itself and its native token RUNE. THORChain is a network that allows users to swap between assets across chains in a non-custodial manner, which may eliminate some of the need for wrapped tokens.

Whatever comes of this deal, many see the PayPal news as the start of a great institutional entrance into Bitcoin and crypto.

Michael Novogratz, CEO of Galaxy Digital and a former Goldman Sachs partner, commented that with PayPal putting serious capital into this space, other Wall Street firms and banks are going to start to look into digital assets.

He specifically highlighted how against bank stocks, PayPal and crypto have strongly outperformed them.