Coinbase Poised for $2 Billion Acquisition of Stablecoin Platform BVNK

Coinbase is reportedly on the verge of acquiring BVNK, a stablecoin infrastructure startup, in a deal valued at $2 billion. This move signals the exchange's strategic expansion into the stablecoin sector.

Coinbase's Strategic Expansion

As reported by Bloomberg, Coinbase Global Inc. is in advanced discussions to finalize the acquisition of BVNK, with due diligence processes already in motion. Insiders suggest the deal could be concluded by the year's end or early next year, though terms may still be subject to change.

Backed by Coinbase Ventures, alongside Citi Ventures, Haun Ventures, and Visa, the acquisition aligns with Coinbase's mission to enhance economic freedom through strategic acquisitions and partnerships.

Should the acquisition succeed, it would strengthen Coinbase's foothold in the stablecoin payments arena, a sector experiencing increased institutional interest following the U.S.'s recent stablecoin regulation.

Exclusive Negotiation Rights

Reports highlight that Coinbase secured exclusive negotiation rights for BVNK following a competitive bidding process. Stablecoins are already a significant revenue stream for Coinbase, contributing nearly 20% of its third-quarter income, largely through its partnership with Circle Internet Group, the issuer of USDC. This partnership allows Coinbase to earn from interest on reserves, and USDC is now integrated into Shopify's payment system for broader adoption.

Strengthening Stablecoin Ties

This potential acquisition follows a separate collaboration between Citigroup and Coinbase to pilot stablecoin-based corporate payments, aiming to modernize transfers between traditional and crypto accounts.

Founded in 2021, BVNK has quickly risen as a prominent fintech entity in the stablecoin market, having raised $90 million to date. Based in London, the company aids merchants in processing payments via both crypto and stablecoins. Acquiring BVNK could provide Coinbase with access to a robust merchant network and compliant infrastructure.

Meanwhile, Coinbase CEO Brian Armstrong anticipates the U.S. crypto market structure bill to pass before year-end, with bipartisan support nearing completion on a regulatory framework for trading, custody, and stablecoins. The BVNK acquisition could accelerate Coinbase's push into digital payments, providing infrastructure for seamless fiat and crypto transactions.