The payments giant said Curv will help it "accelerate and expand its initiatives to support cryptocurrencies and digital assets."
One source tells CoinDesk that Curv could be sold for as much as $500 million.
The new payment option allows users to deposit many currencies "instantly," the exchange's CEO said.
The digital currencies could be distributed through PayPal’s digital wallets, the company’s CEO said.
The U.K. will be the first market outside the U.S. for PayPal's crypto products.
The U.S. Consumer Financial Protection Bureau is probing the social payments app, according to Reuters.
Centralized payment firms like Visa, Mastercard and PayPal have an opportunity to offer innovative stablecoin payment networks, the research firm said.
Customers who bought crypto through the platform have been logging in twice as much as they were before, the payments giant said.
PayPal Ventures, Coinbase Ventures and Winklevoss Capital invested an undisclosed amount in the firm.
Bitcoin hit another all-time high today while ether traders are paying royally to get in on the options action.
The CEO would not confirm whether his company was ever in talks with PayPal, saying BitGo is "in talks with everyone."
Previously, Cash App had only allowed clients to get U.S. currency back on transactions.
Mizuho sees bitcoin not as a source of revenue itself, "but as a vehicle to boost engagement on the app," and that could drive revenue growth.
Paxos has raised $142 million to facilitate mainstream adoption. “We think that opportunity is now,” said CEO Charles Cascarilla.
An Evercore analyst named PayPal as the top payments stock and said its recently launched cryptocurrency offering could boost margin.