Coinbase Abandons $2 Billion BVNK Acquisition at the Last Minute: What Happened?
- Why Did Coinbase and BVNK Call Off the $2 Billion Deal?
- How Would This Deal Have Impacted Coinbase’s Stablecoin Business?
- What’s Next for BVNK After the Failed Coinbase Deal?
- How Does This Reflect Broader Trends in Crypto?
- Key Takeaways From the Coinbase-BVNK Saga
- FAQs: Coinbase and BVNK Deal Breakdown
In a surprising turn of events, Coinbase and BVNK mutually terminated their $2 billion acquisition deal during the due diligence phase. This would have been one of the largest crypto deals in history, bolstering Coinbase's stablecoin infrastructure. BVNK, backed by Citi Ventures and Visa, will now reassess its growth strategy, while Coinbase eyes other partnerships to expand its institutional stablecoin presence. Here’s the full breakdown.
Why Did Coinbase and BVNK Call Off the $2 Billion Deal?
The highly anticipated acquisition of BVNK by Coinbase collapsed unexpectedly during the final due diligence stage. Both companies confirmed the decision was mutual, though neither disclosed specific reasons. Industry analysts speculate that regulatory scrutiny or undisclosed financial discrepancies may have played a role. BVNK, a UK-based stablecoin infrastructure firm, had signed an exclusivity agreement with Coinbase in October 2025, but negotiations fell apart weeks later. This marks the second major failed deal for BVNK after earlier talks with Mastercard also stalled.
How Would This Deal Have Impacted Coinbase’s Stablecoin Business?
Had it gone through, the BVNK acquisition WOULD have significantly boosted Coinbase’s stablecoin revenue, which already accounts for 19% ($246 million) of its Q3 2025 total revenue ($1.9 billion). BVNK’s infrastructure enables businesses to issue and manage stablecoins—a sector projected to grow from $312 billion to $2 trillion by 2028, per U.S. Treasury estimates. Coinbase, fresh off its $2.9 billion Deribit acquisition in August, aimed to dominate institutional stablecoin services. Now, it may pivot to other targets like Circle or Paxos.
What’s Next for BVNK After the Failed Coinbase Deal?
BVNK, which processes over $20 billion annually, remains well-capitalized with support from Citi Ventures and Visa. The firm plans to reevaluate its strategy, possibly pursuing an IPO or smaller partnerships. "We’re exploring all options to scale our infrastructure globally," a BVNK spokesperson told Fortune. Meanwhile, Coinbase emphasized it’s "actively seeking growth opportunities in stablecoins," hinting at upcoming moves.
How Does This Reflect Broader Trends in Crypto?
The collapsed deal underscores Wall Street’s frenzied race to capture stablecoin growth, fueled by recent U.S. legislation like the GENIUS Act. Companies like Western Union and SWIFT are already integrating stablecoins for cross-border payments. "Institutional demand is exploding, but deals are getting harder to close due to regulatory gray areas," noted a BTCC analyst. For now, both Coinbase and BVNK are back to the drawing board.
Key Takeaways From the Coinbase-BVNK Saga
- Deal Size: $2 billion (would’ve been Coinbase’s second-largest acquisition after Deribit).
- Timeline: Exclusivity signed in October 2025, collapsed during due diligence.
- Stablecoin Market: Currently $312 billion, projected to hit $2 trillion by 2028.
- BVNK’s Backers: Citi Ventures, Visa—still committed despite the setback.
Data sources: CoinMarketCap, TradingView, U.S. Treasury reports.
FAQs: Coinbase and BVNK Deal Breakdown
Why did Coinbase walk away from buying BVNK?
While neither company specified, mutual agreements to terminate during due diligence often hint at undisclosed risks or regulatory hurdles.
What does BVNK do?
BVNK provides infrastructure for businesses to issue and manage stablecoins, processing $20B+ in annual transactions.
Will Coinbase pursue other stablecoin acquisitions?
Likely. Coinbase stated it’s "actively seeking opportunities" in this sector, with rivals like Circle in its sights.
