Coinbase has abandoned plans to acquire stablecoin infrastructure startup BVNK in what would have been a roughly $2 billion transaction, marking a significant setback for the crypto exchange's stablecoin expansion strategy and leaving one of the sector's hottest acquisition targets back on the market.
The U.S. crypto exchange and the UK-based fintech mutually agreed to terminate acquisition talks, according to statements provided to Fortune on Tuesday. The decision came after months of negotiations that had progressed to due diligence and an exclusivity agreement signed in October, preventing BVNK from entertaining competing offers during that period.
"We're continuously seeking opportunities to expand on our mission and product offerings," a Coinbase spokesperson said in a statement. "After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward."
Neither company disclosed the specific reasons behind the deal's collapse. The failed transaction represents the latest twist in what had become a competitive bidding war for BVNK, with both Coinbase and Mastercard previously holding advanced acquisition talks for the stablecoin platform.
Why the Deal Mattered
If completed, the BVNK acquisition would have been nearly double Stripe's $1.1 billion purchase of Bridge in February, which currently stands as the largest stablecoin infrastructure deal on record. For Coinbase, it would have ranked as the company's second-largest acquisition after its $2.9 billion purchase of crypto derivatives exchange Deribit completed in August.
The abandoned deal comes as the stablecoin market approaches $250 billion in total market capitalization, experiencing explosive growth since regulatory clarity began emerging in 2025. Stablecoins processed $27.6 trillion in transaction volume in 2024, surpassing the combined payment volumes of Visa and Mastercard.
The timing underscores how critical stablecoin infrastructure has become to payment companies and crypto exchanges alike. The July passage of the GENIUS Act—the first federal regulatory framework for U.S. stablecoins - has accelerated institutional adoption by establishing clear reserve requirements and compliance standards for issuers.
Citi research projects stablecoins could reach $1.9 trillion by 2030 under base-case scenarios, with more optimistic forecasts suggesting as much as $4 trillion as companies and institutions increasingly adopt them for cross-border payments and treasury management.
Inside BVNK's Operations
Founded in 2021 by Jesse Hemson-Struthers, Donald Jackson, and Chris Harmse, BVNK has positioned itself as enterprise-grade infrastructure for stablecoin payments and cross-border transactions. The London-based company processes more than $20 billion annually for global enterprises and payment service providers including Worldpay, Flywire, and dLocal.
The startup has attracted blue-chip backing from traditional finance heavyweights. Visa invested in BVNK in May 2025, followed by Citi Ventures in October, with both seeing the company as strategic positioning in the emerging stablecoin payments infrastructure market. Additional backers include Tiger Global and Haun Ventures.
"Stablecoins are seeing increased interest in use for settlement of on-chain and crypto asset transactions," Arvind Purushotham, head of Citi Ventures, said when announcing the investment. "We were impressed by BVNK's enterprise-grade infrastructure, and their proven track record."
For Coinbase, BVNK offered a direct path to expand its already substantial stablecoin business. The exchange generated $246 million in stablecoin revenue during the third quarter of 2025, representing roughly 19% of its total quarterly revenue as USDC adoption continues growing across its platform.
Coinbase's Strong Financial Position
The failed BVNK deal comes amid otherwise robust financial performance for Coinbase. The exchange reported $1.9 billion in revenue for the third quarter ended September 30, with net income jumping to $433 million from $75.5 million a year earlier - easily surpassing Wall Street expectations.
Transaction revenue nearly doubled to $1.05 billion as trading volumes surged to $295 billion during the quarter. Assets under custody on the platform reached an all-time high of $300 billion, bolstered by institutional inflows and rising cryptocurrency prices.
The Deribit acquisition has proven particularly successful since closing in mid-August. The two platforms collectively generated $840 billion in notional derivatives trading volume during the third quarter, immediately diversifying Coinbase's revenue streams and expanding its international derivatives footprint.
Less than a month before the BVNK deal collapsed, Coinbase also completed its $375 million acquisition of Echo, a platform founded by prominent crypto figure Jordan Fish that helps blockchain startups raise capital. The deal represents Coinbase's continued push to diversify beyond pure trading revenues.
"All of this M&A is really in service of our core focus around trading and payments," Coinbase CEO Brian Armstrong said during the company's third-quarter earnings call, outlining the exchange's "Everything Exchange" vision.
Final thoughts
Despite the setback, Coinbase remains well-positioned to pursue stablecoin infrastructure opportunities. The exchange maintains a strong relationship with Circle, issuer of USDC, and continues expanding its Base Layer 2 network, which became profitable during the third quarter and is attracting developers building stablecoin-powered applications.
For BVNK, the failed talks leave the company exploring strategic alternatives after multiple high-profile acquisition discussions. Sources familiar with the matter told Fortune that Mastercard previously held advanced talks to acquire BVNK before those negotiations also stalled. The payments giant is now reportedly in discussions to acquire Zerohash, another crypto infrastructure provider, for between $1.5 billion and $2 billion.
BVNK's strong backing from Visa and Citi Ventures ensures the company remains well-capitalized to pursue independent growth. The startup's technology addresses critical pain points in cross-border payments - reducing transaction times from days to minutes while significantly cutting costs compared to traditional correspondent banking systems.
The broader stablecoin M&A market shows no signs of cooling. With regulatory clarity improving globally following the GENIUS Act in the U.S. and the Markets in Crypto-Assets (MiCA) regulations in the European Union, traditional financial institutions are racing to secure positions in stablecoin infrastructure before the market matures further.
The failed Coinbase-BVNK deal ultimately highlights both the intense competition for stablecoin assets and the complex due diligence required for major fintech acquisitions. As global adoption accelerates and regulatory frameworks solidify, expect continued consolidation as both crypto-native companies and traditional financial institutions battle for dominance in what analysts project will become a multi-trillion-dollar market within the next five years.