Exodus Movement has announced a definitive agreement to acquire W3C Corp for $175 million, using its Bitcoin holdings as collateral to finance the deal.
The transaction, revealed November 24, will bring payment infrastructure companies Monavate and Baanx under the control of the NYSE American-listed crypto wallet provider.
The acquisition positions Exodus as one of the few self-custodial wallet providers to control the entire payment infrastructure chain, from cryptocurrency storage to card issuance.
The move comes as stablecoin payment volumes surged 70% since February 2025, with business-to-business transfers accounting for nearly two-thirds of activity according to blockchain analytics firm Artemis.
Strategic Pivot Toward Integrated Payments
The deal grants Exodus direct access to card issuance, payment processing, and regulatory capabilities across the United States, United Kingdom, and European Union. The company plans to embed these tools within its consumer and enterprise product lines, eliminating dependence on external service providers.
"Upon closing of the acquisition, Exodus plans to enter the arena of on-chain payments to become one of the few self-custodial wallets to control the end-to-end payments experience, from wallets to cards," the company stated in its official announcement.
The transaction also positions Exodus to issue cards through Visa, Mastercard, and Discover networks. Monavate has already issued approximately 5 million cards, and the combined platform could support up to 50 million, according to a research note from Benchmark analyst Mark Palmer, who called the acquisition Exodus' "most transformative to date."
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XO Swap Integration and Enterprise Expansion
The payment infrastructure will connect directly with XO Swap, Exodus' onchain exchange aggregator, which accounted for 37% of all exchange provider volume in October 2025. The integration will enable programmable payouts and turnkey card issuance for enterprise clients whose customers transact through the platform.
Exodus specifically highlighted plans to expand support for major payment stablecoins following the deal's closure. The timing aligns with explosive growth in the stablecoin payments sector, where volumes reached $10 billion monthly by August 2025, up from $6 billion in February - positioning stablecoin payments to reach $122 billion annually at current run rates.
The acquisition follows Exodus' recent purchase of LATAM-based Grateful, a stablecoin payments orchestrator. Together, these moves equip Exodus with infrastructure to roll out modern payment products for both consumers and merchants in what Benchmark characterized as a full wallet-to-settlement payments stack.
Bitcoin-Secured Financing Structure
Exodus will fund the purchase through existing cash reserves and a credit facility with Galaxy Digital secured against the company's Bitcoin treasury. The arrangement allows Exodus to maintain its cryptocurrency holdings while accessing necessary capital - a strategy increasingly adopted by crypto-native companies seeking growth capital without liquidating digital assets.
In connection with entering the definitive agreement, Exodus loaned approximately $58.8 million to W3C to help fund its acquisitions of Monavate and Baanx. The company may provide up to $10 million in additional working capital if needed, though this financing becomes payable only in the event of a breach by W3C.
Exodus also extended a $10 million secured loan to Garth Howat, secured by his equity interests in W3C, with repayment offset against the purchase price at closing unless repaid earlier.
Final thoughts
Chief Financial Officer James Gernetzke emphasized the revenue potential from interchange fees, processing charges, and program fees, which are expected to become foundational components of Exodus' payments and transaction services business model.
"These offerings will diversify our revenue streams as they help build a more predictable, recurring earnings base aligned with everyday use of digital dollars, while continuing to allow Exodus to take advantage of the volatility of crypto markets," Gernetzke said.
The strategic rationale reflects broader market dynamics. According to Artemis research, business-to-business stablecoin payments reached $76 billion annually, enabling fast, cost-effective global settlements. Crypto cards have settled $18 billion yearly, bridging stablecoins with daily spending.
The transaction is subject to regulatory approvals and standard closing conditions, with completion expected in 2026. Perella Weinberg is serving as financial advisor to Exodus, with Gibson, Dunn & Crutcher LLP and Hogan Lovells providing legal counsel.
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