One of the largest deals ever for a stablecoin startup has fallen through. Coinbase and the U.K.-based BVNK have called off acquisition talks, a spokesperson for the crypto exchange confirmed to Fortune. It wasn’t immediately clear why the two companies iced the deal, which had gotten as far as the due diligence process and seen the crypto giant and BVNK enter into exclusivity in October, meaning the startup couldn’t entertain offers from other bidders.
The acquisition price for BVNK—which helps customers use stablecoins for payments, cross-border transactions, and other use cases—was around $2 billion. If the deal had gone through, it would have been nearly double the $1.1 billion the fintech giant Stripe paid to acquire the stablecoin startup Bridge in an acquisition that closed in February.
“We’re continuously seeking opportunities to expand on our mission and product offerings,” said the Coinbase spokesperson in a statement. “After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward.”
A spokesperson for BVNK declined to comment.
Stablecoin selloff
Despite Coinbase scuttling its plans to acquire BVNK, stablecoin M&A has been a hot trend in crypto and fintech over the past year.
Stablecoins are cryptocurrencies pegged to underlying assets like the U.S. dollar. They are designed to stay stable, as opposed to more volatile tokens like Bitcoin and Ethereum. Proponents say stablecoins can upgrade legacy financial infrastructure, speed up cross-border payments, and reduce transaction fees.
Their rise has caught the attention of big banks and the largest payments networks—so much so that Mastercard has explored stablecoin acquisitions of its own. The payments giant was previously in the running to acquire BVNK and now is in discussions to acquire the crypto and stablecoin infrastructure company Zerohash for between $1.5 and $2 billion, Fortune previously reported.
Smaller fintechs have also bet on stablecoins. In October, the late-stage payments company Modern Treasury acquired the stablecoin startup Beam for around $40 million. Crypto companies are also exploring their own stablecoin plays, including the decentralized finance heavyweight Aave Labs and the Monad Foundation, which is behind a forthcoming blockchain.
Coinbase would have been the largest crypto-native company to invest heavily into stablecoin infrastructure. The crypto exchange has made a series of high-profile acquisitions since January, including its $2.9 billion purchase of the crypto derivatives exchange Deribit.
“All of this M&A is really in service of our core focus around trading and payments,” said Brian Armstrong, CEO of Coinbase, during the exchange’s third-quarter earnings call.
Update, Nov. 11: Headline and top of article tweaked to better reflect statement from Coinbase.
