A major crypto merger that could have reshaped the stablecoin market has quietly fallen apart, marking a shift in strategy for one of the industry’s biggest players. Summary Coinbase and BVNK drop $2B acquisition after due diligence. The deal would have boosted Coinbase’s stablecoin strategy. COIN shares dip as investors reassess growth prospects. Coinbase has called off its planned $2 billion acquisition of U.K.-based stablecoin startup BVNK, ending one of the most anticipated deals in the digital payments space. The decision, reported by a Fortune on Nov. 11, comes after weeks of exclusivity discussions and due diligence. Both firms reportedly agreed to halt talks without disclosing specific reasons. Why the BVNK deal mattered The acquisition would have been one of the biggest in crypto and Coinbase’s largest step into the fast-growing stablecoin payments market. BVNK, founded in 2021, builds infrastructure for cross-border payments and fiat-to-stablecoin conversions and processes more than $20 billion a year. The company raised $50 million last December and counts Visa and Citi Ventures among its investors. For Coinbase, BVNK offered a direct path to expand its stablecoin business, which already contributes nearly one-fifth of its quarterly revenue. If completed, the deal would have been the firm’s second-largest after its $2.9 billion purchase of derivatives exchange Deribit earlier this year. Following the announcement, Coinbase shares dropped 4.38%, as investors saw the move as a missed chance to grow its stablecoin services. Stablecoin M&A stays active Even as Coinbase steps back, stablecoin deals remain strong across the industry. Mastercard, once a potential bidder for BVNK, is now in talks to acquire infrastructure provider Zerohash for up to $2 billion. Modern Treasury bought Beam for $40 million, while projects like Aave Labs and Monad are developing their own stablecoins. Coinbase is still interested in the space despite the BVNK deal being cancelled. The exchange has been growing its presence in markets that are directly related to stablecoin technology, such as trading and payments. With the acquisition now off, Coinbase is likely to explore smaller deals or partnerships to grow its position in the global payments market.
