TLDR
- Negotiations broke down following the Bank of England’s proposal to limit stablecoin holdings to £20,000.
- The deal would have doubled the value of Stripe’s purchase of Bridge, marking an industry milestone.
- Despite the breakup, Coinbase reports a bullish Q3 and advances a strategic partnership with Citi for institutional payments.
Coinbase’s expansion ambitions in the UK stablecoin market have suffered a significant setback. Recent reports reveal that talks for the purchase of stablecoin infrastructure startup BVNK have collapsed.
It is known that both parties agreed “not to move forward,” but sources close to the matter suggest that the BVNK acquisition, valued at around $2 billion, fell victim to regulatory uncertainty, specifically due to the strict framework proposed by the Bank of England.
In late October, the acquisition seemed imminent. BVNK had entered an exclusivity period with Coinbase, preventing negotiations with other bidders and signaling an advanced due diligence phase.
Had it gone through, the operation would have been one of the largest in the sector’s history, exceeding by a wide margin Stripe’s purchase of Bridge in February 2025 for $1.1 billion.
However, the British regulatory proposal, which includes a holding limit of £20,000 per investor for local stablecoins, froze institutional interest, being labeled as an “anti-innovation” measure.
The Weight of Regulation and the Alliance with Citi
The collapse of the BVNK acquisition highlights the friction between Web3 companies and traditional regulators. A Coinbase spokesperson told Fortune that the company continues to seek opportunities to expand its mission, describing the breakup as a mutual decision.
However, exposure to regulatory compliance in an environment where the Bank of England imposes severe restrictions appears to have been the determining factor in halting the investment.
Despite the setback, the US exchange is not stopping its machinery. Coinbase confirmed a strategic collaboration with Citi to improve institutional settlements using blockchain technology.
With this project, they seek to streamline on/off-ramp systems and eventually integrate stablecoins into global payment flows, a function the BVNK acquisition would have considerably accelerated had it been completed.
On the financial front, Coinbase maintains a solid position. Its third-quarter 2025 earnings report showed that transaction revenues doubled compared to the previous year.
This bullish performance is reflected in the market, where COIN stock has risen 22% so far in 2025, valuing the company at $81.9 billion, even as its executives execute strategic stock sales following the good results.
