Coinbase’s $2B Stablecoin Deal with BVNK Collapses

The collapse of Coinbase’s acquisition talks with BVNK represents a substantial setback for the US crypto exchange’s strategic push into the stablecoin payments ecosystem. The two firms had entered into an exclusivity agreement in October following advanced due diligence, with negotiations centering around a deal valued at approximately $2 billion. This price tag would have nearly doubled Stripe’s $1.1 billion purchase of Bridge earlier this year and would have ranked as Coinbase’s second-largest acquisition after its $2.9 billion acquisition of Deribit in August.

BVNK, founded in 2021 by Jesse Hemson-Struthers, Donald Jackson, and Chris Harmse, specializes in using stablecoins to power payments and cross-border transactions. The company claims to handle more than $20 billion in annualized volume and has attracted significant backing from major financial players including Visa and Citi Ventures. The failed acquisition leaves BVNK exploring other strategic options after earlier discussions with Mastercard also stalled, highlighting the challenges facing even well-funded fintech startups in the current market environment.

The failed BVNK acquisition underscores the difficulties crypto companies face when attempting to expand into the stablecoin sector, even as global adoption continues to grow. This setback comes despite the $314 billion stablecoin market gaining fresh regulatory support following the US passing the GENIUS Act in July, which created clearer rules for issuers. The US Treasury has projected that the stablecoin market could reach $2 trillion by 2028, indicating substantial growth potential that makes the collapsed deal particularly significant.

Coinbase’s spokesperson confirmed the cancellation in an exclusive statement to Fortune, stating: ‘We’re continuously seeking opportunities to expand on our mission and product offerings. After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward.’ The lack of specific details about why negotiations collapsed leaves market observers speculating about potential regulatory concerns, valuation disagreements, or strategic misalignments between the two companies.

Interestingly, the BVNK deal collapse comes less than a month after Coinbase completed a $375 million acquisition of Echo, a platform that helps crypto startups raise capital. Founded by popular crypto figure Jordan Fish, also known as ‘Cobie,’ Echo allows users to participate in early-stage fundraising rounds for blockchain projects. This acquisition was part of Coinbase’s broader strategy to diversify beyond trading and strengthen its foothold in the crypto infrastructure space.

The timing is particularly notable given Coinbase’s strong financial performance entering the fourth quarter. The crypto exchange reported a sharp profit surge for the third quarter of 2025, beating Wall Street expectations with net income jumping to $433 million from $75.5 million a year earlier. Total net revenue climbed to $1.8 billion for the quarter ended September 30, with trading volume reaching $295 billion during the same period. Total assets on the platform rose to $516 billion, including $300 billion in assets under custody.

Transaction revenue nearly doubled to $1.05 billion, while subscription and services revenue grew 34.3% year over year to $747 million. Adjusted net income came in at $421 million, with adjusted EBITDA reaching $801 million. These strong financial metrics demonstrate that despite the strategic setback with BVNK, Coinbase maintains robust operational performance and financial health heading into the final quarter of 2025.