Did the Bank of England’s stablecoin misstep just unsettle the $2Bn Coinbase agreement?
Negotiations regarding the acquisition between Coinbase and BVNK, a stablecoin infrastructure startup located in the UK, have reportedly fallen apart, as per a report from Fortune dated yesterday (November 11). While it was not explicitly stated, it’s highly likely that the recent proposal for a stablecoin framework by the Bank of England played a role in Coinbase’s choice to exit the negotiations.
The intended acquisition would have resulted in Coinbase purchasing BVNK for an estimated $2 billion, marking a significant step for the UK/GBP stablecoin sector. However, the complicated and restrictive nature of the Bank of England’s proposal likely deterred numerous Web3 companies from considering entry into the UK trading market.
coinbase has reportedly withdrawn from its planned
$2 billion acquisition of BVNK ( uk based stablecoin startup)the two companies characterized the separation as mutual, but insiders hint at regulatory uncertainties, disagreements over valuation, and crypto law risks as the actual underlying issues… pic.twitter.com/MPWJjgZCkP
— Iptisha | Circulox.org (@iptishax) November 12, 2025
Coinbase Clarifies: “Both Parties Decided Against Moving Forward”
A representative from Coinbase told Fortune, “We are continually looking for opportunities to expand our mission and product offerings. After discussing a potential acquisition of BVNK, both parties mutually agreed not to proceed.”
Prior to the breakdown, discussions between the two companies seemed to be making positive strides, with indications that a deal could have been reached by the end of Q4 this year.
In late October, it was disclosed that BVNK had entered into an exclusivity agreement with Coinbase, restricting the startup from negotiating with other entities. This indicated that the agreement was nearly complete, subject to due diligence.
The causes behind the abrupt collapse of the negotiations remain undisclosed. Nonetheless, it’s quite plausible that the contentious aftermath of the Bank of England’s stablecoin framework proposal played a role.
The proposal indicated that UK investors would face a holding cap of £20,000 for each UK-based stablecoin, which has been criticized as anti-innovative by retail and institutional investors within the crypto domain.
If the deal had proceeded, it would have represented one of the largest acquisitions ever for a stablecoin startup, nearly doubling Stripe’s $1.1 billion acquisition of the stablecoin startup Bridge in February 2025.
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Coinbase Collaborates With Citi for Fiat and Blockchain Institutional Settlements
We’re partnering with @Citi to shape the future of payments.
→Investigating ways to facilitate digital asset usage for Citi clients
→Leveraging stablecoins for payment enhancement
→Refining on and off-rampsIt’s time to integrate digital assets into the global economy. pic.twitter.com/jGaTZ8wPRf
— Coinbase
(@coinbase) October 27, 2025
While Coinbase has decided to withdraw from the UK stablecoin trading market, the firm is still advancing with other growth projects in the region. In October, the US-based exchange announced a new collaboration with Citi to provide 24/7 digital asset payment solutions to institutions.
Coinbase asserts that this strategic alliance will improve existing settlement processes, partly through distributed database technology. The joint initiative will initially focus on streamlining Coinbase’s own on and off-ramp systems, along with enhancing payment experiences for Citi’s institutional clients.
Ultimately, the new payment infrastructure will also integrate stablecoins to link fiat with blockchain settlements, with further updates anticipated in the upcoming months. It is conceivable that Coinbase would have merged the BVNK stablecoin bank into its Citi settlement framework had the acquisition progressed.
“Citi’s extensive platform and knowledge in payments make them an ideal ally as we seek to enhance digital asset capabilities,” stated Brian Foster, Global Head of Crypto as a Service at Coinbase. “By combining their outreach with Coinbase’s prominence in digital assets, we’re developing solutions to simplify and broaden access to digital asset payments.”
Q3 Earnings Report Positive for Coinbase as Director Liquidates $3M CRYPTO TOKEN Shares
In other updates related to Coinbase, the digital asset exchange has reported robust third-quarter performance for 2025, with transaction revenues exceeding double those of the corresponding quarter last year.
Moreover, subscription and service revenues exceeded the upper limit of management’s guidance, leading to a better-than-expected outcome in terms of both revenue and profits.
The strong financial performance prompted Coinbase’s Director, Frederick R. Wilson, to liquidate 9,180 shares of Class A Common Stock on November 6, 2025, for around $3,014,586, with sales occurring at prices ranging from $295.43 to $312.13.
Coinbase shares, COIN, concluded yesterday’s trading session at $304.01, reflecting a drop of -4.3% over the past 24 hours. However, they have increased by +22% year-to-date, with the company’s trading market capitalization now standing at $81.9 billion.
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The article Did Bank of England Stablecoin Blunder Just Spook $2Bn Coinbase Deal? first appeared on 99Bitcoins.
