Quick Breakdown
- •Coinbase and BVNK ended a $2 billion acquisition deal by mutual agreement, without disclosing reasons.
- •The acquisition would have expanded Coinbase’s institutional stablecoin revenue base.
- •BVNK, backed by Citi Ventures and Visa, plans to reassess its strategic options following the collapse of the deal.
Coinbase, BVNK End $2 Billion Acquisition Talks
Coinbase and UK-based stablecoin infrastructure firm BVNK have called off a potential $2 billion acquisition that would have marked one of the largest deals in the crypto industry’s history. According to Fortune, both companies mutually decided not to proceed with the deal, although specific reasons were not disclosed. The talks had reportedly reached the due diligence phase after an exclusivity agreement was signed in October.
A Coinbase spokesperson confirmed the decision, stating, "After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward." The exchange also noted that it "will continue exploring other opportunities" in the stablecoin sector.
A Missed Boost for Coinbase’s Stablecoin Strategy
Had the acquisition gone through, it would have been Coinbase’s second-largest purchase after its $2.9 billion takeover of crypto derivatives exchange Deribit in August. Coinbase becomes one of the only platforms to offer a full range of crypto trading products, including spot, futures, perpetuals, and options, all in a single venue.
The move was expected to strengthen Coinbase’s institutional stablecoin infrastructure and expand its share of stablecoin-related revenue, which reached $246 million, or approximately 19% of its $1.9 billion in third-quarter revenue.
The cancellation could, however, give Coinbase the flexibility to pursue other strategic plays in the $312 billion stablecoin market. This market has seen rising institutional and regulatory interest following the passage of the U.S. GENIUS Act in July. The US Treasury estimated in April that the stablecoin market could grow to $2 trillion by 2028.
BVNK to Reassess its Next Move
BVNK, founded in 2021 by Jesse Hemson-Struthers, Donald Jackson, and Chris Harmse, has processed over $20 billion in annualized transaction volume.
The startup, which counts Citi Ventures and Visa among its backers, will now revisit its growth strategy. The company had also reportedly held talks with Mastercard about a potential acquisition in October, discussions that similarly did not advance.