Coinbase has officially concluded its negotiations to acquire the stablecoin startup BVNK, according to a report by Fortune. Sources indicated that the potential acquisition was valued at around $2 billion. Both Coinbase and Mastercard had previously engaged in advanced discussions regarding the acquisition of BVNK, which is a UK-based fintech firm specializing in stablecoin infrastructure. Following these discussions, the two companies entered a phase of exclusive negotiations.
A spokesperson for Coinbase confirmed the mutual decision to halt the deal, stating, “After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward.” Efforts to obtain a comment from BVNK were unsuccessful as they did not respond immediately.
BVNK focuses on assisting businesses in incorporating stablecoins into their payment systems. The startup had raised $50 million last December, achieving a valuation of $750 million at that time. In addition, earlier this year, Visa made a strategic investment in BVNK, although the specific amount of that investment remains undisclosed.
The proposed $2 billion deal would have represented a significant premium compared to another recent acquisition in the stablecoin infrastructure sector. Last October, private payments firm Stripe acquired the stablecoin platform Bridge for $1.1 billion, finalizing the transaction this February in what was one of the largest acquisitions within the crypto industry.
Coinbase already boasts a strong involvement with stablecoin products, holding a significant stake in Circle, the issuer of USDC, which recently went public in a highly successful IPO. Analysts had suggested that acquiring BVNK could provide Coinbase with a level of “vertical integration,” allowing it to manage both the issuance of USDC through Circle and its enterprise distribution.
Last month, Coinbase unveiled a stablecoin payments platform designed to help businesses modernize their financial operations and transition to cryptocurrency-based systems. Additionally, the exchange recently completed a $375 million acquisition of fundraising platform Echo and its token sale product, Sonar.
In recent times, the stablecoin market has experienced substantial growth, with its total market capitalization increasing by over $120 billion in the last year, as reported by DeFiLlama. The current total market cap stands at approximately $305 billion, exhibiting a slight decline of about 0.67% over the past week.
Looking ahead, market analysts on Myriad predict limited immediate growth, suggesting that the odds of the total market cap reaching $360 billion by February are just 20% as of the latest updates.
