Coinbase is in final negotiations to acquire BVNK. Specifically, this stable infrastructure deal is valued at approximately $2 billion.
US crypto exchange Coinbase Global Inc. is in late-stage talks. The company is looking to acquire stablecoin infrastructure startup BVNK. According to Bloombergthe approximate valuation of the transaction is $2 billion in total. Additionally, the acquisition is subject to due diligence. The transaction could thus be successfully finalized 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 transaction. Specifically, this follows an increase in stablecoin activity. So this calamity began after the first regulation in the United States in July. Therefore, this regulation aimed to formally regulate these digital assets. Plus, everyone from traditional banks to credit card issuers is experimenting. So, companies such as Visa and Mastercard are studying this technology. Ultimately, they are looking for faster and cheaper payments around the world.
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Coinbase Ventures, the venture capital arm, is already an investor. As such, the San Francisco-based exchange hopes to close the deal soon. However, the transaction has not yet been made public. The terms could therefore change during the final negotiations. Plus, the deal could still potentially fall through. Therefore, representatives of BVNK, based in London, did not immediately comment. Indeed, a Coinbase spokesperson declined to comment on these speculations.
Instead, the Coinbase spokesperson took the opportunity to validate the company’s mission. More specifically, the mission is the expansion of economic freedom throughout the world. Additionally, Coinbase is actively looking for different opportunities. Therefore, these opportunities constitute construction, acquisition and partnership. Additionally, this acquisition would help Coinbase reduce its dependence. So, the company needs to move away from simple trading fees.
The potential acquisition is yet another major partnership. In particular, Citigroup and Coinbase have recently tested payments. Therefore, the area of business cooperation was stablecoin-based corporate payments. Therefore, the objective of the partnership is the modernization of money transfer. Additionally, it aims to seamlessly link conventional accounts and cryptocurrency accounts. So, acquiring BVNK could give the exchange valuable access. Indeed, it provides access to the BVNK merchant network.
BVNK’s merchant infrastructure is crucial for stable payments
BVNK was successfully established in 2021. As a result, the London-based company has quickly become a leading fintech startup. Additionally, it operates in the competitive stablecoin market. Additionally, the company has raised approximately $90 million in funding. Thus, BVNK supports various merchants in payment processing. Specifically, they make payments with cryptocurrencies and stablecoins. Therefore, the acquisition provides ready infrastructure for Coinbase compliance.
In addition, Coinbase is actively working to increase the use of USDC. They therefore share their revenues with Circle Internet Group Inc. This is done in particular through a crucial partnership. An example of partnering with Shopify increases usage. Additionally, Coinbase is increasingly focusing on payments. Therefore, stablecoins are expected to play a growing role in this sector. Thus, the exchange sees BVNK as a necessary catalyst.
On the other hand, BVNK’s core business is enabling businesses to accept stable payments. Additionally, the company now handles billions of annualized transactions. In addition, according to sources, the potential valuation of the transaction would be very large. More precisely, it represents between 1.5 and 2.5 billion dollars. For this reason, this agreement is very important for the stablecoin infrastructure space. This is therefore an important step in the evolution of digital finance.
The new deal has clear strategic benefits for Coinbase. Concretely, it provides access to a vast active network of merchants. Therefore, the exchange benefits from a strong and regulatory-focused infrastructure. Additionally, this move helps consolidate their position in the fast-growing payments space. Plus, it fits perfectly with their mission. Thus, this acquisition is important to increase economic freedom around the world through digital assets.
