Breaking: Coinbase Nears $2B Deal to Buy Stablecoin Platform BVNK

Coinbase is reportedly closing in on a $2 billion acquisition of stablecoin infrastructure startup BVNK. This comes as the exchange seeks to tap into the stablecoin market.

Coinbase Eyes Expansion Through BVNK Takeover

According to Bloomberg, Coinbase Global Inc. is in advanced negotiations to purchase BVNK, with due diligence already underway. Insiders say the transaction could be finalized by the end of this year or early next year. However, the terms remain fluid, and the deal could still face last-minute changes.

Coinbase Ventures, the exchange’s investment arm, is already among BVNK’s backers, alongside Citi Ventures, Haun Ventures, and Visa. The exchange’s spokesperson stated that the firm “actively explores opportunities to advance its mission of expanding economic freedom” through acquisitions, partnerships, or new product lines.

If successful, the acquisition would further consolidate the exchange’s footprint in stablecoin payments. This sector has seen a surge in institutional activity since the United States passed its first-ever stablecoin regulation earlier this year. 

Reports indicate that the exchange secured exclusive rights to negotiate the BVNK purchase after winning a competitive bidding process. Stablecoins have already become a crucial revenue driver for the firm. This accounts for nearly 20% of its total income in the third quarter. 

Much of this comes from its partnership with Circle Internet Group, the issuer of USDC, through which the firm earns a share of interest generated on reserves. The company has also integrated USDC into Shopify’s payments ecosystem to push mainstream adoption.

Coinbase Strengthens Ties in Stablecoin Payments

The potential deal comes on the heels of a separate partnership between Citigroup and Coinbase to pilot stablecoin-based corporate payments. The goal of the partnership is to make money transfers between conventional and cryptocurrency accounts more modern.

Founded in 2021, BVNK has quickly become one of the leading fintech startups in the stablecoin market. The company, based in London, has raised $90 million so far and helps merchants process payments using both crypto and stablecoins.

The acquisition could give the exchange access to BVNK’s merchant network and compliance-ready infrastructure.

Meanwhile, Coinbase CEO Brian Armstrong predicted that the U.S. crypto market structure bill will pass before year-end. Speaking recently from Capitol Hill, Armstrong said lawmakers on both sides of the aisle are “90% aligned” on the framework to regulate trading, custody, and stablecoins.

The acquisition of BVNK could accelerate the U.S. exchange’s push into digital payments. As a result, it has access to infrastructure that makes it simple for businesses to take fiat and cryptocurrency payments.