TLDR
- Exodus has acquired W3C Corp for $175 million to enhance its payments infrastructure.
- The acquisition includes Monavate and Baanx, which will help Exodus control the full payment stack.
- Exodus aims to offer integrated crypto storage, card issuance, and payment processing solutions.
- The deal is partially funded through a loan secured by Exodus’s Bitcoin holdings.
- Exodus plans to issue cards through Visa, Mastercard, and Discover as part of the acquisition.
Exodus, a self-custodial crypto wallet provider, has struck a $175 million deal to acquire W3C Corp. The acquisition includes Monavate and Baanx, two payment infrastructure companies. This marks a significant shift in Exodus’s strategy as it plans to integrate payment tools into its platform.
The deal will enable Exodus to control the entire payment stack, from crypto storage to card issuance. With this move, Exodus aims to close the gap between holding and spending crypto. CEO JP Richardson stated,
“By bringing card and payments infrastructure in-house, we are positioning Exodus as the only platform you need for your money.”
Exodus Aims to Dominate Payments Infrastructure
Exodus plans to integrate Monavate and Baanx’s infrastructure into its consumer and enterprise products. This will allow Exodus to issue cards through Visa, Mastercard, and Discover. It will also reduce reliance on third-party vendors and support a broader range of assets.
James Gernetzke, Exodus’s CFO, said,
“The economics from interchange, processing, and program fees are expected to become a core part of our business.”
The company will fold issuing, processing, and compliance tools directly into its offerings. This strategy will help Exodus manage payment services more efficiently.
The acquisition will also expand Exodus’s ability to offer stablecoin payments. This follows the recent addition of Grateful, a Latin American stablecoin payments startup. Exodus’s onchain exchange aggregator, XO Swap, will gain access to Monavate and Baanx’s tools for card issuance and programmable payouts.
Exodus Uses Bitcoin Reserves for Acquisition
To finance the $175 million deal, Exodus will use cash on hand and funds from its Galaxy Digital credit facility. The loan, secured by Exodus’s Bitcoin holdings, includes an initial $58.8 million loan to W3C. Exodus may also extend an additional $10 million for working capital.
Exodus expects the acquisition to close in 2026. The company believes the move will strengthen its position in the payments and transaction services sector. By bringing key payment technologies in-house, Exodus will position itself to offer a more integrated solution for users.
The deal comes as major payment networks like Visa and Mastercard explore blockchain-based settlement. Visa has already begun piloting a system to pre-fund cross-border payments with USDC. Similarly, Swift is collaborating with Consensys and financial institutions to build a blockchain settlement platform for real-time payments.
Exodus’s expansion into payments marks a clear strategy to become a more comprehensive platform for crypto users.
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