Crypto Wallet Firm Accelerates Push Into Card Issuing and Stablecoin Payments
Exodus, a major self-custodial crypto wallet provider, has taken a decisive step into the on-chain payments industry with a $175 million acquisition of W3C Corp, signaling a strategic shift toward integrating full payment infrastructure directly into its platform. The move brings payment processors Monavate and Baanx under the company’s umbrella as it works to unify crypto storage, stablecoin spending, and card issuance.
A Strategic Bet Backed by Bitcoin Holdings
To execute the deal, Exodus is drawing from its Bitcoin reserves and available cash, along with a credit facility secured by its BTC holdings. The company has already extended $58.8 million to W3C to support its purchase of Monavate and Baanx, with another $10 million available as working capital.
Executives say the acquisition will allow Exodus to eliminate dependency on third-party issuers while supporting more digital assets across its ecosystem. “By bringing issuing, processing and compliance inside our platform, we close the gap between holding and spending,” CEO JP Richardson said.
The firm expects revenue from interchange, processing and program fees to become a core driver of future growth. CFO James Gernetzke noted that these income streams will form a “foundational part” of the company’s transaction services business.
Strengthening On-Chain Rail Infrastructure
The acquisition expands the capabilities of Exodus’s existing on-chain tools, including XO Swap, which will gain access to programmable payouts and turnkey card-issuing technology. The announcement follows the company’s recent purchase of Grateful, a stablecoin-focused payments startup in Latin America.
Industry analysts say the timing aligns with a broader shift toward blockchain-based settlement. Visa is currently piloting USDC-funded cross-border payment rails, while Swift is advancing a real-time settlement framework in collaboration with global banks and Ethereum infrastructure developers.
A Growing Push Toward Digital Settlement
The deal positions Exodus to compete in a rapidly evolving market as major payment networks embrace stablecoins. “The industry is moving toward instant, on-chain settlement,” one payments expert noted. “Platforms that control both the wallet and the payment stack will have a significant advantage.”
With Bitcoin-backed financing and a fully integrated payments roadmap, Exodus is aiming to become one of the few platforms where users can securely hold, swap and spend digital assets all in one place.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.