Payments giant PayPal has made its first investment in the blockchain world after joining a funding round for Cambridge Blockchain.

SEC filings show that Cambridge Blockchain has already raised around $3.5m from multiple investors in the last year.

PayPal has confirmed that it invested an undisclosed amount in the company which offers banks and other fintech firms with identity management service on top of the public blockchain.

“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,” said a PayPal spokesperson.

“Our investment will allow us to explore potential collaborations to leverage blockchain technology.”

PayPal’s sponsorship of the Fintech Europe 2018 accelerator campaign led to the firm’s first contacts with Cambridge Blockchain, who were participants in that event. Cambridge Blockchain has also worked with PayPal’s venture arm, PayPal Ventures.