Coinbase’s termination of its $2 billion acquisition of BVNK reflects the regulatory pressure and new merger and acquisition logic in the stablecoin ecosystem under the GENIUS Act
![图片[1]-Coinbase’s $2 billion acquisition of BVNK has been called off! The battle among traditional financial institutions for stablecoin resources is now a foregone conclusion.-OzABC](https://www.ozabc.com/wp-content/uploads/coinbase-bvnk-merger-collapse-800x533.webp)
addThe $2 billion acquisition deal between cryptocurrency exchange Coinbase and UK stablecoin infrastructure company BVNK was abruptly halted just as due diligence was about to be completed. The deal ended with “mutual agreement,” and what was originally seen as a turning point in the stablecoin sector fell through.
The critical moment of the transaction’s termination
According to reports , the two companies entered the final verification stage after signing an exclusivity agreement in October. BVNK has an annualized processing volume exceeding $20 billion, and its acquisition by Coinbase would have strengthened its institutional stablecoin service portfolio. Coinbase’s stablecoin revenue reached $246 million in the third quarter, accounting for 19% of its total revenue, leading many to view the acquisition as a key step in its expansion. Now that the agreement has terminated, BVNK needs to reassess its growth path; Coinbase emphasizes that it will continue to seek other stablecoin opportunities, and the reason for the termination is currently unclear. Originally, it was believed that this acquisition would help Coinbase become the most powerful cryptocurrency company in the industry.
Does the GENIUS Act raise the bar for compliance?
While the GENIUS Act, which takes effect in July 2025, requires stablecoin issuers to maintain a 1:1 reserve of low-risk assets, directly increasing compliance costs, the Act’s implementation, though boosting the total market capitalization of stablecoins from $238 billion to $278 billion, has placed a heavy burden on large-scale mergers and acquisitions. Market speculation suggests that reserve requirements, additional governance structures, and auditing processes emerging during due diligence weaken acquisition synergies, prompting Coinbase to reserve capital for its core trading and payments businesses rather than taking on the risks of large-scale integration.
Traditional payment players are interested
Coinbase’s exit doesn’t signify a cooling of competition. After missing out on BVNK, Mastercard is in talks to acquire Zerohash for $1.5 billion to $2 billion; payment company Stripe acquired startup Bridge earlier this year; and Western Union and MoneyGram are accelerating the adoption of stablecoin solutions. Ironically, facing new regulations, traditional financial institutions, with their existing licenses and risk control systems, have gained a first-mover advantage.
Data shows that in 2025, 78% of crypto M&A deals focused on institutional services and cybersecurity, signifying a shift in capital from extensive expansion to precise defense. Companies are pursuing two paths: strengthening internal R&D for organic growth, or turning their attention to overseas markets with clearer regulatory frameworks. BVNK, backed by Visa and Citi Ventures, remains a popular target, but its future trajectory will depend on how well it demonstrates its value in a high-standard compliance environment.
Coinbase’s decision to abandon BVNK is not merely the end of trading; rather, it reflects the evolution of the stablecoin ecosystem into traditional finance. In the future, whether they are native crypto companies or cross-industry financial giants, they must first establish a compliant foundation before participating in the next round of growth. Innovation is no longer solely based on technological breakthroughs, but rather on rational expansion after careful consideration of regulations.
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