Exodus, a provider of cryptocurrency wallets, is leveraging its Bitcoin reserves to facilitate a significant acquisition worth $175 million involving W3C Corp, the parent of payment infrastructure firms Monavate and Baanx, thereby enhancing its onchain payment capabilities.
The agreement, revealed on Monday, suggests a crucial transition in the NYSE-listed firm’s strategy. By integrating Monavate and Baanx into its operations, Exodus intends to position itself as one of the few self-custodial wallets controlling the comprehensive payments infrastructure from cryptocurrency storage to card issuance.
“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 initiative aims to amalgamate issuing, processing, and compliance tools directly into both consumer and enterprise offerings, reducing dependence on third-party vendors and expanding support for a broader array of assets, particularly focusing on widely used payment stablecoins. Additionally, it’s anticipated that the company will gain the capability to issue cards linked with major payment networks such as Visa, Mastercard, and Discover.
To fund the $175 million acquisition, Exodus plans to utilize available cash and withdraw from a credit facility with Galaxy Digital, a loan secured by its Bitcoin holdings. Under this agreement, Exodus has already provided $58.8 million to W3C for the acquisition of Monavate and Baanx, potentially extending another $10 million for operational expenses, with transaction closure projected for 2026.
“The economic benefits from interchange, processing, and program fees are expected to form a pivotal component of our payment and transaction services operation,” indicated James Gernetzke, CFO of Exodus.
This acquisition is part of a broader trend as significant payment networks increasingly embrace stablecoins and blockchain-based settlements. In September, Visa commenced a pilot program enabling banks and financial institutions to pre-fund cross-border payments using stablecoins such as USDC and EURC, aimed at expediting global transactions.
Furthermore, Swift has announced its initiative to collaborate with Ethereum developer Consensys alongside more than 30 financial institutions to create a blockchain-based settlement platform facilitating real-time cross-border payments, available 24/7.
