fintech
Coinbase is reportedly in talks for one of its most ambitious acquisitions to date, one that could give the U.S. cryptocurrency exchange direct control over a major part of the world’s stablecoin payments network.
According to Coinbase is in talks to acquire BVNK, a London-based fintech startup specializing in stablecoins and digital asset payment rails, according to people familiar with the matter. The acquisition, valued at approximately $2 billion, will give Coinbase ownership of the infrastructure used by merchants to seamlessly move funds between crypto and fiat systems.
If completed, the deal could close by the end of 2025, but the timeline remains flexible, the people said. The companies are currently completing due diligence, but the agreement may be amended before approval.
This is not a new relationship. Coinbase Ventures, the exchange’s investment arm, was one of BVNK’s early backers, along with Visa, Citi Ventures, and Haun Ventures.
Why BVNK is important for Coinbase’s next chapter
Founded in 2021, BVNK has built a reputation for providing compliance-focused payment tools that allow businesses to process crypto and stablecoin transactions as easily as card or bank transfers. The company’s platform connects traditional financial institutions to blockchain networks without forcing them to build in-house infrastructure.
For Coinbase, acquiring BVNK is less about a transaction and more about becoming a payments company. The move fits CEO Brian Armstrong’s long-term vision to expand beyond currency exchange services into everyday commerce and cross-border payments.
Stablecoins: Coinbase’s Quiet Profit Engine
Over the past year, stablecoins have quietly become one of Coinbase’s most profitable business segments. The company earns revenue from interest on its reserves through a partnership with issuer Circle. USDCcurrently accounts for about one-fifth of Coinbase’s total revenue.
Coinbase has been steadily integrating stablecoins into mainstream platforms, including Shopify, enabling USDC-based payments and facilitating cryptocurrency spending for online retailers.
The acquisition of BVNK will accelerate that strategy and give Coinbase direct access to BVNK’s global merchant network, enterprise payment tools, and regulated on/off ramp capabilities.
Broad competition for stablecoin supremacy
The deal comes at a pivotal time for the industry. Earlier this year, the US approved the first comprehensive stablecoin regulations, sparking a wave of competition between exchanges, banks, and fintechs to capture the stablecoin payments market.
Coinbase has been particularly aggressive. In recent months, the company partnered with Citigroup to pilot blockchain-based corporate payments, testing how businesses could use stablecoins to move funds between traditional bank accounts and crypto wallets.
Armstrong recently told lawmakers in Washington that bipartisan progress on a U.S. cryptocurrency market structure bill is “90% complete,” suggesting a more friendly regulatory environment could soon open the floodgates to large institutional participation.
From an exchange to a financial infrastructure giant
If the BVNK deal goes through, Coinbase stands to benefit more than just a payments startup, effectively becoming a bridge between the global banking system and blockchain payments.
BVNK’s technology enables instant conversion between fiat currencies and stablecoins, automated compliance checks, and payments through authorized banking partners. This is exactly what Coinbase needs to become a full-service financial infrastructure provider.
In doing so, Coinbase moves one step closer to transforming from a cryptocurrency exchange into something more permanent: a regulated blockchain-native financial network that spans both the digital and traditional economies.
As the lines between cryptocurrencies and mainstream finance continue to blur, this potential $2 billion deal could mark the moment Coinbase stops competing with exchanges and starts competing with banks.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any particular investment strategy or cryptocurrency. Always do your own research and consult a licensed financial advisor before making any investment decisions.
