Warren Buffett Backed Capital One Mulls Buying Discover Financial Services

Warren Buffett-backed Capital One is reportedly planning to buy Discover Financial Services. According to a report by Reuters, the two firms could enter into a deal soon in the foreseeable future.

Capital One to Potentially Buy Discover Financial Services

Reuters reported citing a person with knowledge of the situation that Capital One, an online consumer bank and credit card issuer supported by investor Warren Buffett, is thinking about buying credit card provider Discover Financial Services. The report further states that a deal might be announced as early as Tuesday, however, the terms were not disclosed.

LSEG data shows that Discover Financial has a market capitalization of $27.6 billion while Capital One is valued at $52.2 billion.

Capital One and Discover Financial Services’ Crypto Ventures Likely to Benefit

Both Capital One and Discover Financial Services have some exposure to digital asset offerings. At present, Capital One helps its customers access the cryptocurrency market even though it does not offer Bitcoin trading services directly. Holders of Capital One accounts can safely move USD to authorized and regulated cryptocurrency exchanges. Taking a progressive approach to cryptocurrencies, Capital One aligns its services with top U.S. financial agencies’ regulatory frameworks. This includes the Financial Crimes Enforcement Network (FinCEN).

Even Discover Financial Services had previously tried to venture into the digital asset realm by appointing Alexandra Prodromos. The new product manager for blockchain and digital currency at Discover Financial was hired by the company in an attempt to plan the trajectory of hopping onto the crypto bandwagon. Discover at that time was looking for a manager to lead the development of new products in the crypto field. It also sought to improve the company’s capabilities there and find new payment products through research.

The deal, if it goes through, could see a new development for the crypto-using customers of the companies. A potential acquisition leads to a consolidation of crypto offerings and even the launch of new products by the firm.