Coinbase’s $2B deal with stablecoin startup BVNK collapses

Coinbase just walked away from a $2 billion stablecoin deal with BVNK.

Coinbase’s plan to make a major move into the stablecoin payments sector has hit a wall. The US crypto exchange has ended acquisition talks with UK-based fintech BVNK, in what could have been one of the largest deals ever for a stablecoin-focused startup.

Details about why the negotiations broke down have not yet been revealed.

Acquisition deal collapses

The two companies had entered into an exclusivity agreement in October, after extensive due diligence, and revealed that a deal, worth around $2 billion, was in place. Confirming the cancellation, a Coinbase spokesperson said in an exclusive statement to Fortune:

“We continually seek opportunities to expand our mission and product offerings. After discussing a possible acquisition of BVNK, both parties have mutually agreed not to move forward.”

That price would have nearly doubled Stripe’s $1.1 billion purchase of Bridge earlier this year and would also have been Coinbase’s second-largest deal after its $2.9 billion acquisition of Deribit in August.

BVNK, founded in 2021 by Jesse Hemson-Struthers, Donald Jackson and Chris Harmse, specializes in using stablecoins to make cross-border payments and transactions. The company claims to manage more than $20 billion in annualized volume and has secured backing from Visa and Citi Ventures. The failure of the negotiations forces BVNK to explore other strategic options after a previous round of discussions with Mastercard failed.

For Coinbase, the failed deal highlights how difficult it can be to expand into the stablecoin sector, even as global adoption grows. Importantly, the $314 billion stablecoin market is getting new regulatory support after the United States passed the GENIUS Act in July and created clearer rules for issuers. The US Treasury previously said it expected the market to reach $2 trillion by 2028, which appears to be huge growth potential.

Echo Deal and third quarter profits

The setback comes less than a month after Coinbase completed its $375 million acquisition of Echo, a platform that helps crypto startups raise capital. Founded by popular crypto figure Jordan Fish, also known as “Cobie,” Echo allows users to participate in early-stage fundraising for blockchain projects. The deal was part of Coinbase’s strategy to diversify beyond trading and strengthen its presence in crypto infrastructure.

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The crypto exchange also entered the fourth quarter on solid financial footing. Coinbase reported a sharp rise in profits for the third quarter of 2025, beating Wall Street expectations. Net profit jumped to $433 million from $75.5 million a year earlier, while total net income climbed to $1.8 billion for the quarter ended September 30.

It recorded a trading volume of $295 billion during the same period, while total assets on the platform reached $516 billion, including $300 billion in assets under custody. Transaction revenue also nearly doubled to $1.05 billion, while subscription and service revenue increased 34.3% year-over-year to $747 million. Adjusted net income was $421 million, with adjusted EBITDA reaching $801 million.