Coinbase Walks Away From $2B Bid for UK Stablecoin Firm BVNK
Deal Talks Collapse
Coinbase has dropped plans to acquire UK-based stablecoin infrastructure company BVNK, ending what had been advanced negotiations over a deal valued at about $2 billion. The talks ended by mutual agreement, according to both companies, which did not provide a reason.
“later than discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward,” a Coinbase spokesperson told The Block. The companies had entered an exclusivity arrangement in ahead October, following reports that Mastercard had also explored a possible bid for BVNK before Coinbase moved ahead in talks.
The proposed acquisition would have marked one of Coinbase’s largest deals and its most direct move into the stablecoin infrastructure segment, which has viewn rising investor interest as demand for tokenized payments grows.
Investor Takeaway
Rising Interest in Stablecoin Firms
The talks between Coinbase and BVNK came during a wave of consolidation across digital payments and blockchain infrastructure. In 2024, Stripe acquired stablecoin settlement beginup Bridge for roughly $1.1 billion. Mastercard is now in separate discussions to purchase Zerohash for between $1.5 billion and $2 billion, according to reports.
BVNK, founded in 2021, offers payment and stablecoin services for institutions and fintechs viewking to bridge traditional banking with digital asset networks. The firm has positioned itself as a regulated infrastructure provider for stablecoin issuance and cross-border transactions, targeting banks and large fintech clients looking for compliant crypto payment rails.
For Coinbase, acquiring BVNK would have expanded its presence in Europe, where the new Markets in Crypto-Assets (MiCA) framework is drawing platforms and issuers viewking clear regulation. Instead, the company will likely continue leveraging its close partnership with Circle, issuer of the USDC stablecoin, for onchain settlement and custody services.
Coinbase’s M&A Strategy
The breakdown of BVNK talks comes later than a year of heightened dealmaking by Coinbase and other well-capitalized crypto firms. In August, Coinbase completed its $2.9 billion acquisition of Deribit, a leading derivatives trading platform, marking one of the largest crypto mergers since 2021.
The platform has sought to diversify beyond spot trading by building exposure to derivatives, payments, and institutional infrastructure — areas viewed as more durable revenue sources amid regulatory scrutiny and market cycles. Acquiring BVNK would have strengthened its foothold in the stablecoin ecosystem and given it regulated access to Europe’s payments market.
Coinbase was previously part of the CENTRE Consortium alongside Circle, which created the USDC stablecoin. Though the partnership was dissolved, Coinbase continues to play a major role in promoting USDC adoption and holds a profit-sharing agreement with Circle. BVNK’s business model — connecting fiat banking systems with stablecoins — would have complemented that strategy.
Investor Takeaway
Industry Context
The collapse of the deal also highlights the increasing competition among traditional financial players entering the stablecoin market. Both Mastercard and Visa have launched pilot projects using tokenized settlements, while global banks including Standard Chartered and DBS have introduced tokenized deposit and lending products.
Stablecoin infrastructure firms have become strategic acquisition targets as global payment networks and crypto platforms converge around onchain settlement. Analysts expect more cross-sector deals as regulatory clarity improves in the U.S., Europe, and parts of Asia.
For BVNK, the end of the talks leaves the company independent but likely still open to partnerships or future offers. A potential acquisition by a global payments group such as Mastercard or Visa could provide an alternative path toward scaling its platform across regulated markets.
