Exodus Closes Crypto Holding-Spending Gap With Strategic Expansion

Exodus Movement, a leading self-custodial cryptocurrency wallet provider, has announced a $175 million acquisition of W3C Corp, the parent company of crypto card and payments firms Monavate and Baanx, marking a strategic expansion into on-chain payments. The deal, funded through a combination of cash reserves and Bitcoin-backed financing from Galaxy Digital, is expected to close in 2026. By integrating Monavate and Baanx's infrastructure, Exodus aims to create a unified platform for crypto storage, card issuance, and payment processing, positioning itself as a rare self-custodial wallet with end-to-end payments capabilities.

The acquisition accelerates Exodus's vision to bridge the gap between holding and spending digital assets. "People already trust Exodus to hold their dollar stablecoins and crypto. 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," said CEO JP Richardson. The move enables the company to issue payment cards via networks like Visa, Mastercard, and Discover while expanding its geographic footprint in the U.S., U.K., and EU.

Financial details reveal that Exodus has already advanced $58.8 million to W3C to fund its prior acquisitions of Monavate and Baanx, with an additional $10 million allocated for working capital. The Bitcoin-secured credit facility with Galaxy Digital underscores Exodus's growing reliance on stablecoin-driven payment solutions, a sector that saw a 70% surge in stablecoin payment volumes from February to August 2025. CFO James Gernetzke highlighted that revenue from interchange fees, processing, and program fees will form a "foundational part" of Exodus's payments business, diversifying its income streams.

This acquisition follows Exodus's recent purchase of Grateful, a stablecoin payments orchestrator in Latin America, further solidifying its role in the digital payments ecosystem. The company's XO Swap application, which handled 37% of exchange provider volume in October 2025, will integrate Monavate and Baanx's capabilities to offer flexible solutions like embedded payouts and programmable card issuance. Partnerships with MetaMask and Ledger, alongside regulatory compliance frameworks, position Exodus to compete in a rapidly evolving market.

The deal reflects broader industry trends as payment networks and fintech firms increasingly adopt blockchain-based solutions. Visa's recent pilot of USDC/EURC pre-funded cross-border payments and Swift's collaboration with Ethereum developer Consensys highlight the sector's shift toward real-time, blockchain-enabled settlements. For Exodus, the acquisition of W3C Corp represents not just a strategic pivot but a transformative step toward establishing itself as a crypto payments giant.