Crypto wallet provider Exodus has revealed plans to use its Bitcoin reserves to fund a major expansion into onchain payments. It has announced a $175 million agreement to take over W3C Corp, the parent firm of payments companies Monavate and Baanx.
The move marks a big shift for the publicly traded company, which aims to become one of the few self-custodial wallets able to manage the entire payments stack.
Exodus stated that bringing Monavate and Baanx under its control will allow it to unite crypto storage, transaction tools, issuing services, and compliance systems together. According to CEO JP Richardson, the company wants to allow users to use their crypto holdings in day-to-day payments.
Exodus Aims to Control Every Layer of Payments
The company plans to integrate issuing, processing, and compliance technology directly into its consumer and enterprise products. This transition is expected to reduce reliance on outside service providers and make it easier for Exodus to support a wider variety of assets, including leading payment-focused stablecoins.
Exodus also expects the deal to grant it the capacity to issue cards through major networks such as Visa, Mastercard, and Discover.
To fund the acquisition, the firm will use existing cash and draw from its credit facility with Galaxy Digital, backed by its Bitcoin reserves. Exodus has already provided W3C with a $58.8 million loan to finalize its purchase of Monavate and Baanx. It may also supply another $10 million for operational needs. Final closure of the overall deal could happen in 2026.
James Gernetzke, the company’s chief financial officer, said revenues from interchange, processing, and program fees would become a core element of Exodus’s payments business over time.
Broader Expansion Into Stablecoin and Blockchain Payments
XO Swap, Exodus’s onchain exchange aggregator, will gain access to Monavate and Baanx tools that support programmable payouts and ready-made card programs. This follows Exodus’s recent purchase of Grateful, a Latin American stablecoin payments startup.
The acquisition comes when major payment networks are expanding their involvement with stablecoins and blockchain settlement systems. In September, Visa began testing a new system that allows financial institutions to pre-fund cross-border transfers with USDC and EURC to accelerate settlement.
Swift also announced a partnership with a leading blockchain developer and more than 30 financial institutions to build a settlement platform designed for around-the-clock international transfers.