Exodus Acquires W3C to Bridge Crypto Holdings and Everyday Spending

Exodus Movement Inc. (EXOD) has announced a definitive agreement to acquire W3C Corp, the parent company of crypto payment infrastructure providers Baanx and Monavate, for $175 million. The deal, subject to regulatory approval, will expand Exodus's self-custodial wallet platform by integrating card and payment processing capabilities, enabling support for stablecoins and card issuance through major networks like Visa, Mastercard, and Discover. The acquisition follows Exodus's recent purchase of Grateful, a stablecoin payments firm, and marks a strategic shift toward controlling end-to-end on-chain payments.

Exodus CEO JP Richardson emphasized that the move aims to bridge the gap between crypto custody and everyday spending, stating, "By bringing card and payments infrastructure in-house", "we are closing the gap between holding and spending, and positioning Exodus as the only platform you need for your money". The integration of Baanx and Monavate's issuing, processing, and regulatory capabilities is expected to reduce reliance on third-party providers while diversifying revenue streams through interchange and processing fees. The company projects that these fees will create a "more predictable, recurring earnings base aligned with everyday use of digital dollars".

Funding for the acquisition will come from a mix of cash reserves and a credit facility secured by Exodus's Bitcoin holdings. The company has already loaned $58.8 million to W3C to support its prior acquisitions of Monavate and Baanx, with additional financing contingencies tied to regulatory compliance. The transaction is anticipated to close in 2026, pending approvals from U.S., U.K., and EU regulators.

Exodus Movement Inc.'s expansion into card and payment processing represents a major step toward a seamless on-chain financial ecosystem. The integration of Baanx and Monavate will bring these capabilities directly into the Exodus platform, reducing reliance on external partners and broadening the company's revenue model.

The deal underscores growing demand for stablecoin-powered payments, with volumes rising 70% from February to August 2025, driven largely by B2B transactions. Exodus's XO Swap platform, which partners with MetaMask and Ledger, already handles 37% of exchange provider volume. Analysts note that the acquisition positions Exodus to compete more directly with traditional fintech players by offering embedded programmable payouts and turnkey card issuance.

Shares of Exodus rose 4% in after-hours trading to $15.18 following the announcement, though the stock remains down 51% year-to-date. The company's stock price had previously dipped 1.37% to $15.03 after hours, reflecting mixed investor sentiment amid broader crypto market volatility.

Regulatory scrutiny and technical integration challenges remain key risks. The acquisition must navigate compliance across multiple jurisdictions, and successful execution will depend on scaling card network partnerships and maintaining stablecoin payment volume growth. Perella Weinberg Partners and Gibson Dunn are advising Exodus, while D.A. Davidson and Latham & Watkins represent W3C.

---