Coinbase Abandons $2 Billion Acquisition of BVNK

Coinbase and stablecoin startup BVNK have mutually decided to abandon a $2 billion acquisition deal. This was reported by a representative of the trading platform to Fortune.
The decision was mutual, with reasons undisclosed. The parties ceased cooperation during the due diligence phase after signing an exclusivity agreement in October.

“After discussing the potential acquisition of BVNK, both parties agreed not to proceed further,” a Coinbase representative stated, adding that the company will continue to explore other opportunities.

The deal could have been Coinbase’s second-largest acquisition following its purchase of the crypto derivatives exchange Deribit for $2.9 billion in August.
BVNK will return to seeking new opportunities. Previously, the company was in acquisition talks with Mastercard. Among the startup’s investors are Citi Ventures and Visa.

“Global” Stablecoins

Coinbase’s interest in BVNK coincided with the rising popularity of stablecoins on Wall Street. Major payment networks such as Western Union, Mastercard, and Visa have begun integrating solutions based on “stable coins.”
Legislation also supports market growth. In July, the US passed the GENIUS Act. According to Standard Chartered, the total market value of stablecoins is expected to grow to ~$2 trillion by 2028.
At the time of writing, the capitalization of the “stable coins” sector stands at $312 billion.