Coinbase Close $2B Deal to Acquire BVNK Stablecoin Platform

Coinbase is apparently close to acquiring BVNK, a stablecoin infrastructure firm, for $2 billion.

According to reports, Coinbase is getting closer to purchasing stablecoin infrastructure startup BVNK for $2 billion. The exchange is doing this in an effort to access the stablecoin market.

Coinbase Acquires BVNK to Grow

Bloomberg reports that due diligence is already in progress and that Coinbase Global Inc. is in advanced talks to acquire BVNK. According to insiders, the deal might be completed by the end of this year or the beginning of next year. The details are still negotiable, though, and last-minute alterations could still affect the agreement.

Along with Citi Ventures, Haun Ventures, and Visa, BVNK already has Coinbase Ventures, the exchange's investment arm, as one of its supporters. The company “actively explores opportunities to advance its mission of expanding economic freedom” through partnerships, acquisitions, or new product lines, according to a representative for the exchange.

Should the acquisition be successful, the exchange's presence in stablecoin payments would be further consolidated. Since the United States established its first stablecoin regulation earlier this year, institutional participation in this sector has increased dramatically.

According to reports, the exchange won a competitive bidding procedure and was granted exclusive rights to negotiate the BVNK transaction. For the company, stablecoins have already emerged as a key source of income. This represents almost 20% of its third-quarter total revenue.

The company receives a portion of interest generated on reserves through its cooperation with Circle Internet Group, the issuer of USDC, which accounts for a large portion of this. In an effort to promote widespread usage, the business has also incorporated USDC within Shopify's payment infrastructure.

Coinbase Enhances Partnerships for Stablecoin Transactions

The possible agreement follows the exchange and Citigroup's independent collaboration to test stablecoin-based business payments. The collaboration aims to modernize money transfers between traditional and cryptocurrency accounts.

Since its founding in 2021, BVNK has grown to rank among the top fintech companies in the stablecoin space. The London-based business, which has garnered $90 million so far, assists retailers in processing payments using stablecoins and cryptocurrency.

The exchange may gain access to BVNK's merchant network and compliance-ready infrastructure as a result of the transaction.

Brian Armstrong, CEO of Coinbase, forecasted that the U.S. cryptocurrency market structure bill will be approved by the end of the year. According to Armstrong, who recently spoke from Capitol Hill, senators from both parties are “90% aligned” on the framework for regulating stablecoins, trading, and custody.

The U.S. exchange's push into digital payments may be accelerated by the acquisition of BVNK. Consequently, it has access to infrastructure that facilitates the acceptance of both cash and cryptocurrency payments by businesses.