Exodus Eyes Onchain Payments Expansion with $175M W3C Corp Acquisition

Exodus Invests in the Future of Crypto Payments

Crypto wallet provider Exodus is strategically deploying its Bitcoin reserves to spearhead a significant expansion into onchain payments. This initiative is underscored by a definitive agreement to acquire W3C Corp, the parent entity of payment infrastructure powerhouses Monavate and Baanx, for a substantial $175 million.

This agreement, publicly disclosed on Monday, signals a pivotal shift in strategic direction for the NYSE-listed firm. By integrating Monavate and Baanx directly into its operations, Exodus is poised to become a leader among self-custodial wallets, possessing end-to-end control over the payments ecosystem, encompassing everything from secure crypto storage to seamless card issuance. CEO JP Richardson articulated the company's vision: “By internalizing card and payments infrastructure, we are bridging the gap between holding and spending, solidifying Exodus’s position as the singular platform required for managing your finances.”

The company intends to embed issuing, processing, and compliance tools directly within its consumer and enterprise-facing product suites. This move will curtail its dependence on external vendors and facilitate the support of a broader spectrum of digital assets, including the most prevalent payment stablecoins. Furthermore, Exodus anticipates gaining the capability to issue cards directly through major networks such as Visa, Mastercard, and Discover.

Bitcoin Holdings Fuel Strategic Acquisition

To finance the $175 million transaction, Exodus plans to utilize its existing cash reserves in conjunction with its credit facility from Galaxy Digital, a loan facility collateralized by the company’s Bitcoin (BTC) holdings. Under the terms of the agreement, Exodus has already extended a $58.8 million loan to W3C to facilitate its acquisition of Monavate and Baanx and may provide an additional $10 million in working capital. The deal is anticipated to close in 2026.

James Gernetzke, chief financial officer of Exodus, commented, “The economic benefits derived from interchange, processing, and program fees are projected to become a cornerstone of our payments and transaction services business.” Concurrently, XO Swap, Exodus’s onchain exchange aggregator, will gain enhanced access to Monavate and Baanx’s toolsets for programmable payouts and streamlined card issuance. This announcement follows Exodus’s recent acquisition of Grateful, a burgeoning LATAM-based stablecoin payments startup.

Crypto Infrastructure Adoption Accelerates

Exodus’s strategic acquisition of W3C aligns with the increasing adoption of stablecoins and blockchain-based settlement solutions by major payment networks.

In September, Visa initiated a pilot program enabling banks and financial institutions to pre-fund cross-border payments using USDC (USDC) and EURC (EURC), with the objective of expediting global fund transfers.

This development followed Swift’s announcement of its collaboration with Ethereum developer Consensys and over 30 financial institutions to construct a blockchain-based settlement platform designed to facilitate round-the-clock, real-time cross-border payments.