Exodus taps Bitcoin holdings to fund $175M move into onchain payments

Crypto wallet provider Exodus plans to use its Bitcoin reserves to finance a major push into onchain payments, striking a $175 million deal to acquire W3C Corp, the parent company of payment infrastructure providers Monavate and Baanx.

The agreement, announced on Monday, marked a major shift in strategy for the NYSE-listed company. By bringing Monavate and Baanx in-house, Exodus aims to become one of the few self-custodial wallets to control the entire payments stack, from crypto storage to card issuance.

“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,” CEO JP Richardson said.

The company plans to fold issuing, processing and compliance tools directly into its consumer and enterprise products, reducing its reliance on third-party vendors and enabling support for a broader range of assets, including the most widely used payment stablecoins. It also expects to gain the ability to issue cards through Visa, Mastercard and Discover.

Related: Grab deepens stablecoin push with StraitsX Web3 wallet and settlements

Exodus uses Bitcoin holdings to finance deal

To finance the $175 million deal, Exodus will use cash on hand and draw from its credit facility with Galaxy Digital, a loan secured by the company’s Bitcoin (BTC) holdings. As part of the agreement, Exodus has already loaned $58.8 million to W3C to support its acquisition of Monavate and Baanx and may extend an additional $10 million for working capital. Closing is expected in 2026.

“The economics from interchange, processing and program fees are expected to become a foundational part of our payments and transaction services business,” said James Gernetzke, chief financial officer of Exodus.

As part of the deal, XO Swap, Exodus’s onchain exchange aggregator, will gain access to Monavate and Baanx tools for programmable payouts and turnkey card issuance. The announcement follows the recent Exodus acquisition of Grateful, a LATAM-based stablecoin payments startup.

Cointelegraph reached out to Exodus for comment, but had not received a response by publication.

Related: Efforts underway to digitize trade in Africa with blockchain, stablecoins

Crypto rails gain momentum

Exodus’s plan to acquire W3C comes as major payment networks lean into stablecoins and blockchain-based settlement.

In September, Visa began piloting a new system that lets banks and financial institutions pre-fund cross-border payments with USDC (USDC) and EURC (EURC), aiming to speed up global transfers.