Exodus taps Bitcoin holdings to fund $175M move into onchain payments
Exodus is using a portion of its Bitcoin treasury to fund a $175 million acquisition of W3C Corp, the parent company behind Monavate and Baanx. This move marks a deeper shift into on-chain payments as the company aims to build a more integrated financial ecosystem. By bringing these businesses under one roof, Exodus plans to enhance its capabilities in digital asset custody, card issuance, and payment processing while strengthening its operational control.
The company believes that combining these services will significantly reduce reliance on third-party providers and allow faster support for a wider range of digital assets, particularly popular payment stablecoins. Exodus views this acquisition as a key step in expanding its product reach, improving user experience, and positioning itself at the center of the growing blockchain-based payments market.
Why this acquisition matters
Exodus, a NYSE American-listed self-custody wallet provider, aims to control the payments stack from storage to card issuance by bringing Monavate and Baanx in-house. The firm expects recurring economics from interchange, processing, and program fees to underpin its payments and transaction services business.
“By bringing card and payments infrastructure in-house, we are closing the gap between holding and spending,” CEO JP Richardson said. CoinDesk
What’s in the $175M package
Target
W3C Corp (parent of Monavate and Baanx).
Price
About $175 million, subject to customary adjustments.
Structure
Cash on hand plus a Galaxy Digital credit facility secured by Bitcoin holdings.
Close
Expected in 2026, pending approvals.
Capabilities Exodus gains
Monavate and Baanx bring issuing, processing, and compliance frameworks that position Exodus to issue cards across Visa, Mastercard, and Discover networks, expand geographic reach (U.S., U.K., EU), and offer programmable payouts tools Exodus plans to surface in both consumer and enterprise products, including XO Swap.
Exodus uses Bitcoin holdings to finance $175M deal: funding and treasury view
Exodus plans to fund the transaction with cash and a Bitcoin-collateralized facility from Galaxy Digital. The approach preserves fiat liquidity while keeping BTC as treasury collateral, a model Exodus has used in prior facilities.
Execution timeline and integration: Exodus uses Bitcoin holdings to finance $175M deal
The acquisition is subject to regulatory approvals and customary closing conditions, with closing expected in 2026. Exodus says interchange and processing revenues are expected to become a foundational component of its payments business post-close.
Product impact: from custody to spend
Exodus intends to embed issuing, processing, and compliance directly into its apps, aiming to support a broader range of assets (including major stablecoins) and to reduce dependence on third-party vendors. This follows its Grateful acquisition to expand stablecoin payments in LATAM, suggesting a multi-region onchain payments strategy.
Context & Analysis
Vertical integration across custody, issuing, and processing is rare among self-custodial wallets. Owning Monavate and Baanx could streamline card programs and reduce third-party costs, but also concentrates regulatory and operational responsibility. The Bitcoin-backed financing underscores Exodus’ commitment to BTC as treasury collateral while accessing fiat liquidity for M&A. Execution risk centers on licensing, card-network certifications, and cross-border compliance to hit the 2026 close.
Conclusion
Exodus is working to become a full-stack on-chain payments provider, aiming to manage everything from custody to issuing and processing. By gaining tighter control over these core functions, the company expects to offer a smoother and more reliable payment experience. This strategy is designed to turn its existing wallet users into active, everyday spenders within the crypto ecosystem.
The company believes this shift will be especially powerful once stablecoin payments expand further. With the W3C acquisition expected to close in 2026, Exodus plans to integrate its new capabilities quickly, enabling broader payment support and strengthening its position in the on-chain payments market.
FAQs
Q : What is Exodus buying?
A : W3C Corp, parent of payments firms Monavate and Baanx, for about $175 million.
Q : How is the deal funded?
A : With cash on hand plus a Galaxy Digital credit facility secured by Exodus’ Bitcoin holdings.
Q : When will the deal close?
A : Expected in 2026, subject to regulatory approvals and other customary conditions.
Q : What changes for users?
A : Exodus plans to integrate issuing, processing, and compliance directly into its apps, enabling card issuance and programmable payouts.
Q : Will it support Visa, Mastercard, and Discover?
A : Yes, Exodus says the combined stack positions it to issue cards across all three networks.
Q : Does this affect XO Swap?
A : XO Swap is expected to gain access to Monavate and Baanx tools for payouts and turnkey card issuance.
Q : Why did Exodus use Bitcoin as collateral in this deal?
A : Using a BTC-secured facility preserves fiat liquidity while leveraging its crypto treasury as collateral.
Facts
Event
Exodus agrees to acquire W3C Corp (Monavate, Baanx) to build an end-to-end onchain payments stack.Date/Time
2025-11-25T16:00:00+05:00Entities
Exodus Movement, Inc. (NYSE American: EXOD); W3C Corp; Monavate; Baanx; Galaxy Digital.Figures
Deal value ≈ USD 175 million; financing via cash + BTC-secured credit facility; close targeted 2026.Quotes
“Positioning Exodus as the only platform you need for your money.” JP Richardson, CEO.Sources
Exodus press release; CoinDesk coverage. Exodus+1