According to a report from Bloomberg, US-based cryptocurrency exchange Coinbase (COIN) is reportedly in advanced negotiations to acquire BVNK, a startup specializing in stablecoin infrastructure, in a deal valued at approximately $2 billion. This acquisition is pending due diligence and could see closure later this year or early next year.
Coinbase Ventures, the venture capital arm of Coinbase, is known to be an investor in BVNK, suggesting a pre-existing relationship that may facilitate the acquisition.
This regulatory framework has prompted various entities, including credit card giants Visa and Mastercard, as well as traditional banks, to experiment with blockchain technology to streamline financial transactions.
Earlier this week, Fortune reported that Coinbase has secured exclusivity in discussions with BVNK following a competitive bidding process.
The exchange aims to enhance the utilization of Circle’s USDC stablecoin, for which it shares revenue with issuer Circle Internet Group Inc., and has formed partnerships, such as with Shopify, to further this goal.
BVNK’s platform enables merchants to accept payments in stablecoins, which aligns with Coinbase’s strategy to create a more comprehensive banking experience built on stablecoins.
Earlier this year, Coinbase launched Coinbase Business, a platform designed to assist businesses with payments and invoicing, indicating a clear intent to expand its offerings in this area.
The exchange has also recently completed its acquisition of Deribit, a leading player in the options market that holds over 75% of market share outside the United States, according to Alesia Haas, Coinbase’s finance chief.
The exchange’s stock, COIN, closed the week’s trading session at $343, an 8.2% retrace in just four days amid the broader crypto market’s volatility.
Featured image from Shutterstock, chart from TradingView.com
