Coinbase (NASDAQ:COIN), a top crypto exchange, has decided not to purchase BVNK , a money service business that enables stablecoin usage. Shares of Coinbase are currently higher in a day when markets are bullish.
It has long been rumoured that Coinbase was in advanced discussions to purchase Bvnk. The most recent report had Coinbase acquiring BVNK for around $2 billion.
The reason for the change of heart was not immediately available.
A spokesperson for Coinbase was quoted as explaining, “After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward.”
The thesis on the possible acquisition was that nearly 20% of Coinbase’s Q3 revenue was coming from stablecoins. As stablecoins become the preferred method of value transfer, BVNK’s global presence, speedy response times, and established payments business ($20B processed annually) were thought to complement Coinbase’s growing portfolio of services as the company morphs from a crypto exchange to the future of all things finance.
More recently, Coinbase announced its first token offering, similar to ICOs but regulated, as it enters into the issuance sector, becoming a primary offering platform.
Coinbase recently shared Q3 earnings delivering $295 billion in trading volume alongside $516 billion in assets hosted on the platform.