Coinbase Joins Stablecoin "Infrastructure War" with $2B BVNK Bet

Coinbase Global Inc. (NASDAQ: COIN) is in late-stage negotiations to acquire London-based stablecoin infrastructure firm BVNK for approximately $2 billion, according to CoinDesk and WalletInvestor. The deal, if finalized, would mark one of the largest stablecoin-related acquisitions to date and underscore Coinbase's strategic pivot toward expanding its foothold in the fast-growing digital payments sector. The acquisition is expected to close by late 2025 or early 2026, pending regulatory and due diligence reviews .

The move aligns with Coinbase's broader efforts to diversify revenue streams beyond trading fees. Stablecoins now account for nearly 20% of Coinbase's total revenue, driven by partnerships like its integration of Circle's USDC stablecoin and interest in reserves. By acquiring BVNK, Coinbase aims to enhance its ability to facilitate faster, cheaper, and more secure transactions for businesses globally . BVNK's infrastructure, which enables merchants to accept both fiat and stablecoin payments, could also accelerate Coinbase's entry into mainstream financial operations, challenging traditional banks and fintech rivals .

BVNK, founded in 2021, has emerged as a key player in the stablecoin ecosystem, offering compliance-ready tools for cross-border payments and tokenized asset settlements, as The BlockBeats reports. Its technology bridges traditional finance with crypto, a critical capability as global regulators like the EU and U.S. finalize frameworks for stablecoin oversight . Coinbase Ventures, the exchange's investment arm, is already a BVNK backer, alongside Visa and Citi Ventures, suggesting strategic alignment with the startup's mission .

The acquisition follows a broader industry trend of legacy financial firms and crypto exchanges consolidating stablecoin infrastructure. Mastercard, for instance, has been linked to similar discussions for BVNK, though Coinbase currently holds the lead in negotiations . Meanwhile, competitors like Stripe and Visa have already made moves to integrate stablecoins into their networks. Stripe's $1.1 billion acquisition of Bridge in 2024 and Visa's recent expansion to support four stablecoins—USDC, EURC, PYUSD, and USDG—highlight the sector's competitive intensity, per CoinPaprika.

Regulatory developments are also shaping the landscape. The U.S. GENIUS Act and EU's Markets in Crypto-Assets (MiCA) framework are creating clearer guidelines for stablecoin operations, encouraging institutional adoption. Coinbase CEO Brian Armstrong has publicly advocated for U.S. crypto regulations, stating lawmakers are "90% there" in crafting a framework by late 2025 . A successful BVNK acquisition would position Coinbase to capitalize on these regulatory tailwinds, particularly as stablecoin market capitalization surges toward $4 trillion by 2030, per Citi forecasts and Coinotag.

Coinbase's Q3 2025 earnings preview revealed mixed results, with trading volume and subscription revenue down quarter-over-quarter, according to Benzinga and Seeking Alpha. However, the company's acquisition of DeFi platform Derebit and blockchain fundraising firm Echo for $375 million signaled a commitment to innovation . Analysts at J.P. Morgan and William Blair have maintained bullish ratings on Coinbase, citing its potential to leverage stablecoin growth and regulatory clarity .

Mastercard, another stablecoin contender, is separately in talks to acquire ZeroHash, a crypto infrastructure firm, for $1.5–2 billion, as reported by TS2 Tech. These parallel moves highlight the escalating "infrastructure war" in the stablecoin space, where control over payment rails and compliance tools is becoming a primary battleground, according to Yahoo Finance.