Coinbase Global, Inc. confirmed on November 25 that it has terminated its $2 billion acquisition talks with stablecoin infrastructure provider BVNK, a deal that had reached the due‑diligence stage. The decision follows heightened regulatory scrutiny under the July 2025 GENIUS Act, which tightened rules around stablecoins, and a broader market slowdown that reduced trading volumes and made the transaction less attractive to both parties.
BVNK, founded in 2021, builds a payment‑infrastructure layer that enables businesses to issue and transact with stablecoins. Coinbase had been pursuing the acquisition to broaden its stablecoin ecosystem, expand cross‑border payment capabilities, and tap into BVNK’s merchant‑payment network. The regulatory tightening and the need to allocate capital to other growth initiatives led Coinbase to reassess the strategic fit and ultimately walk away from the deal.
The UK savings account, launched for select users on November 11, offers a 3.75% AER interest rate paid daily and is backed by ClearBank. The product is the first of its kind from a crypto‑native exchange, providing FSCS protection up to £85,000 and allowing users to swap instantly between fiat and crypto. Coinbase’s VASP registration with the FCA, obtained in February 2025, underpins the product’s regulatory compliance and signals the company’s commitment to operating within the UK’s banking framework.
Coinbase’s Q1 and Q2 2025 earnings reports showed revenue misses—$2.03 billion and $1.5 billion, respectively—due to a decline in trading volumes and a softer macro environment. The company’s management cited “strong demand for subscription and services revenue” as a mitigating factor, but the overall revenue shortfall underscored the need for new, stable revenue streams. The UK savings account launch is positioned as a counterbalance to trading‑volume volatility, offering a predictable interest‑earning product that can attract and retain customers.
Brian Armstrong, Coinbase’s CEO, said the savings account “is a big unlock for our users in the UK, giving them a daily‑paid interest rate and FSCS protection.” Keith Grose, Coinbase UK CEO, added that the product “highlights our focus on delivering the best financial experience to Brits.” Mitesh Savjani, UK product lead, noted that the savings account “complements our card and crypto services, moving us closer to a fully integrated financial platform.”
The termination of the BVNK deal and the launch of the UK savings account illustrate Coinbase’s strategic recalibration. By avoiding a large acquisition, the company preserves capital and sidesteps integration risks, while the regulated savings product diversifies revenue, strengthens its regulatory standing, and positions it to compete more directly with traditional banks and fintechs in the UK. These moves are likely to influence investor perception of Coinbase’s ability to navigate regulatory challenges and pursue scalable, low‑risk growth opportunities.
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