Coinbase is in final negotiations to acquire BVNK. Specifically, this stablecoin infrastructure deal is valued at approximately $2 billion.
US crypto exchange Coinbase Global Inc. is in late-stage talks. The firm is looking to acquire stablecoin infrastructure startup BVNK. According to Bloomberg, the approximate valuation of the deal stands at $2 billion total. Furthermore, the acquisition is subject to due diligence. As a result, the transaction would be able to close successfully at the end of the year. As such, it could also become final early next year.
Acquisition Aims to Diversify Revenue and Expand Payment Network
First, the potential transaction would be the most recent deal. Specifically, it follows a surge in stablecoin activity. Therefore, this calamity started after the first regulation in the US in July. Consequently, that regulation was intended to formally regulate these digital assets. In addition, everybody from traditional banks to credit card issuers is experimenting. Thus, companies such as Visa and Mastercard are investigating such technology. Ultimately, they are looking for faster and cheaper payments worldwide.
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Coinbase Ventures, the venture capital arm, is already an investor. As such, the San Francisco-based exchange expects to close the deal soon. However, the transaction has not been made public yet. Therefore, the terms might change during final negotiations. Moreover, the deal may still potentially fall through altogether. Thus, representatives of London-based BVNK did not comment immediately. Indeed, a Coinbase spokesperson refused to comment on the speculation.
Instead, the Coinbase spokesperson took the opportunity to validate the firm’s mission. Specifically, the mission is the expansion of economic freedom around the world. Furthermore, Coinbase actively researches different opportunities. Consequently, these opportunities constitute building, acquiring, and partnering. Moreover, this acquisition would help Coinbase to reduce its dependence. Thus, the firm is to move away from simply trading fees.
The potential acquisition is yet another major partnership. In particular, Citigroup and Coinbase recently piloted payments. Therefore, the companies’ cooperation area was stablecoin-based corporate payments. Consequently, the purpose of the partnership is money transfer modernization. Moreover, it aims to smoothly bridge conventional and cryptocurrency accounts. Thus, the BVNK acquisition could give the exchange a valuable access. In fact, it gives access to BVNK’s merchant network.
BVNK’s Merchant Infrastructure Crucial for Stablecoin Payments
BVNK was successfully established in 2021. Consequently, the London-based company quickly became a leading fintech startup company. Moreover, it runs in the competitive stablecoin market. Furthermore, the company has raised around 90 million dollars in funding. Thus, BVNK assists different merchants in processing the payment. Specifically, they make payments with both crypto and stablecoins. Therefore, the acquisition provides Coinbase compliance-ready infrastructure.
Additionally, Coinbase is actively working to increase the use of USDC. Consequently, they are sharing revenues with Circle Internet Group Inc. In particular, this is by means of a critical partnership. An example of a partnership with Shopify increases using. Moreover, Coinbase focuses more and more on payments. Therefore, stablecoins are predicted to play a rapidly growing role in this sector. Thus, the exchange considers BVNK as a necessary catalyst.
On the other hand, the core business of BVNK allows businesses to accept stablecoin payments. Furthermore, the company now handles billions in annualized transactions. Moreover, the potential valuation of the deal was indicated to be a broad range, as per the sources. Specifically, that is between $1.5 billion and $2.5 billion. For that reason, this deal is very important for the space of stablecoins infrastructure. Thus, it is a significant step in digital finance evolution.
The new deal has some obvious strategic benefits for Coinbase. Specifically, it gives access to a big, active network of merchants. Consequently, the exchange receives strong, regulatory-focused infrastructure. Moreover, this move aids with solidifying their position in the fast-growing payment space. Furthermore, it is completely in line with their mission. Thus, this acquisition is important in increasing economic freedom in the world through digital assets.
