Exodus, a prominent cryptocurrency wallet provider, has announced its intention to significantly expand its onchain payment capabilities through a substantial $175 million acquisition deal. This strategic move involves taking over W3C Corp, the parent company of payment service providers Monavate and Baanx.
This acquisition represents a pivotal shift for the publicly traded firm, as it aims to position itself as one of the few self-custodial wallets capable of managing the complete payments stack. According to JP Richardson, the CEO of Exodus, the goal is to empower users to utilize their cryptocurrency holdings for everyday transactions.
Integration of Payment Technologies
Exodus plans to directly integrate issuing, processing, and compliance technologies into its consumer and enterprise offerings. This transition is expected to minimize the company”s dependence on external service providers, thereby facilitating support for a broader range of assets, including key payment-focused stablecoins.
Additionally, the acquisition will enable Exodus to issue payment cards through major networks such as Visa, Mastercard, and Discover. To finance this acquisition, the company will utilize existing cash reserves and draw from its credit facility with Galaxy Digital, supported by its Bitcoin reserves. Exodus has already provided W3C with a loan amounting to $58.8 million to facilitate the acquisition of Monavate and Baanx, with an additional $10 million potentially allocated for operational requirements.
Future Prospects for Stablecoin Payments
Looking ahead, this acquisition is expected to enhance XO Swap, Exodus”s onchain exchange aggregator, by providing access to Monavate and Baanx”s tools that support programmable payouts and readily available card programs. This follows Exodus”s recent acquisition of Grateful, a stablecoin payment startup based in Latin America.
The timing of this acquisition coincides with a broader market trend where major payment networks are increasingly exploring the use of stablecoins and blockchain settlement systems. Notably, in September, Visa began testing a system allowing financial institutions to pre-fund cross-border transfers using USDC and EURC, thereby expediting the settlement process. Similarly, Swift has partnered with a leading blockchain developer and over 30 financial institutions to create a 24/7 international settlement platform.
As Exodus moves to consolidate its position in the onchain payments landscape, the anticipated revenue from interchange, processing, and program fees is expected to become a fundamental aspect of its future payments business, as noted by James Gernetzke, the company”s chief financial officer.
