Coinbase Abandons $2 Billion BVNK Stablecoin Deal, COIN Tumbles 4%

Coinbase has scrapped plans to acquire stablecoin infrastructure firm BVNK in a deal estimated at $2 billion, ending talks that had reached the due diligence stage.

The US crypto exchange confirmed the decision in a statement to Fortune, saying the parties “mutually agreed to not move forward.” It didn’t provide further details.

COIN shares tumbled more than 4% in trading yesterday, bringing its loss for the past month to almost 15%.

Coinbase share price (Source: Google Finance)

Coinbase Eyed BVNK Amid Stablecoin Boom Triggered By GENIUS Act

Coinbase’s talks with BVNK came amid a boom in the stablecoin market after US President Donald Trump signed the GENIUS Act into law in July. That gave long-awaited regulatory clarity to the market, paving the way for institutions to use stablecoins as a way to upgrade legacy payment rails. 

The sector’s total market capitalization has soared past $305 billion, according to DefiLlama, with Stripe, Western Union, Bank of America and Citibank among firms moving to capitalize on the sector’s potential. 

Stablecoin market cap (Source: DefiLlama)

Stablecoins are already important for Coinbase. In its third-quarter earnings report, the exchange said stablecoin services generated $355 million in revenues, or  around 19% of its $1.8 billion revenue for the period. 

Coinbase On An Acquisition Spree

Coinbase has been on an acquisition spree this year. Had it sealed the BVNK deal, it would have been its second-largest deal after the $2.9 billion acquisition of crypto derivatives exchange Deribit in August. 

Its key acquisitions this year are as follows:

Gave Coinbase a Cyprus Investment Firm license, enabling it to offer contracts for differences (CFDs) and expand its regulatory footprint across the European Economic Area.

A San Francisco-based on-chain advertising and attribution platform founded by a former Facebook ads lead, strengthening Coinbase’s data and marketing capabilities.

A $2.9 billion acquisition of the leading crypto derivatives exchange, expanding Coinbase’s footprint in institutional and derivatives trading.

A token distribution and management startup, adding infrastructure for tokenization and asset issuance.

A community and on-chain capital raising platform that has helped raise over $200 million across around 300 deals, acquired for roughly $375 million in cash and equity.

Crypto-Friendly Regulatory Environment Prompts Other Deals

Other crypto firms have also taken advantage of the more crypto-friendly regulatory environment in the US under the Trump administration. 

Among them is Ripple, the parent company of XRP, which also announced multiple acquisitions this year. 

The company bought prime-brokerage Hidden Road for around $1.25 billion, the stablecoin payments platform Rail for $200 million, corporate treasury management firm GTreasury for $1 billion, and custody infrastructure firm Palisade for $1 billion.

MoonPay, the crypto payments infrastructure company, also acquired Helio for around $175 million.