- Exodus is acquiring W3C Corp for $175 million to expand into crypto payments.
- The deal includes payment infrastructure firms Monavate and Baanx.
- Exodus will use Bitcoin-backed credit and cash reserves to finance the purchase.
- The company aims to integrate card issuance and payment processing in-house.
- Major payment networks and financial institutions are increasingly adopting blockchain and stablecoins for settlement.
Exodus, a crypto wallet provider listed on NYSE, announced a $175 million agreement to acquire W3C Corp, the parent company of payment infrastructure firms Monavate and Baanx. The acquisition aims to advance Exodus’s position in onchain payments and expand its capabilities. The agreement was announced on Monday and marks a strategic shift for the Brooklyn-based company.
By bringing payment card issuance, processing, and compliance tools in-house, Exodus plans to reduce reliance on third parties and support more digital assets, including popular stablecoins used for payments. According to [CEO JP Richardson], “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.” The company also expects to issue cards via VISA, Mastercard, and Discover networks.
To fund the deal, Exodus will use existing cash on hand along with drawing on a credit facility backed by its Bitcoin holdings through Galaxy Digital. The company has already loaned approximately $59 million to W3C to assist with acquiring Monavate and Baanx, with an additional $10 million possible for working capital. The transaction is expected to close in 2026.
James Gernetzke, Exodus’s CFO, noted that revenues from interchange fees, processing, and program fees are expected to become foundational to their payments and transaction services business. Additionally, Exodus’s onchain exchange aggregator XO Swap will integrate tools from Monavate and Baanx for programmable payouts and card issuance. This move follows Exodus’s recent purchase of Grateful, a stablecoin payments startup based in Latin America.
Exodus’s acquisition takes place amid a broader industry trend where major payment networks adopt blockchain technologies. Visa recently piloted a system enabling financial institutions to pre-fund cross-border payments using stablecoins USDC and EURC to accelerate transfers. In parallel, Swift has partnered with Ethereum developer ConsenSys and more than 30 financial institutions to develop a blockchain-based platform for 24/7 real-time cross-border payments.
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