Exodus Acquires W3C Corp for $175 Million Using a Bitcoin-Backed Loan
Exodus, the company behind one of the world’s largest non-custodial crypto wallets, has announced a landmark $175 million agreement to acquire W3C Corp along with its subsidiaries Baanx and Monavate. The deal is structured using a bitcoin-backed credit facility, marking one of the most ambitious M&A moves in the fintech and crypto-payment sector.The acquisition is designed to transform Exodus from a wallet provider into a fully integrated payment ecosystem. By absorbing W3C Corp’s infrastructure, the company aims to issue crypto-linked cards across Visa, Mastercard and Discover networks, while simultaneously expanding its regulatory footprint in the United States, the United Kingdom and the European Union.
Why Exodus is making such a large strategic move
Exodus has positioned itself for years as a user-friendly, self-custodial wallet, but lacked native access to traditional payment rails. By acquiring Baanx and Monavate—two established players in card issuance, digital banking and compliance—Exodus eliminates one of the biggest barriers faced by crypto users: converting digital assets into spendable money in real time.CEO JP Richardson emphasized that the acquisition will bridge the historical gap between “holding crypto” and “using crypto.” With integrated payment technology, Exodus expects to offer seamless on-chain to real-world transactions, enabling customers to spend stablecoins, bitcoin or other assets instantly at millions of merchants worldwide.
A bitcoin-backed loan powers the purchase
One of the most notable aspects of the deal is its financing model. Instead of selling treasury assets or raising equity, Exodus opted to use bitcoin as collateral to secure the acquisition loan. This approach allows the company to retain long-term exposure to BTC while leveraging its balance sheet to accelerate growth.Bitcoin-backed credit has become increasingly common among institutions, but deploying it for a nine-figure acquisition remains rare. For Exodus, it signals confidence in both bitcoin’s long-term value and the commercial potential of payment infrastructure built directly on blockchain rails.
How W3C, Baanx and Monavate strengthen the ecosystem
Baanx is known for powering crypto-linked cards used in the EU and UK markets, while Monavate specializes in issuing, processing and compliance management across major card networks. Together, these companies bring the regulatory licenses, operational capacity and global partnerships needed to scale Exodus’s payment ambitions.With the acquisition, Exodus will gain:
- Direct access to Visa, Mastercard and Discover networks for issuing crypto-enabled debit and virtual cards.
- Regulatory coverage across multiple continents, accelerating expansion into the US, UK and EU without lengthy licensing delays.
- Payment processing and interchange revenue streams that are stable and predictable compared to volatile crypto markets.
- Corporate-grade payment infrastructure that Exodus plans to offer through its new service, XO, aimed at enterprise clients.
The combination effectively turns Exodus into a hybrid between a crypto wallet, a neobank and a payment processor—an ecosystem far broader than its original scope.
What it means for users and the broader market
For everyday users, the upgrade will likely result in a smoother spending experience. Instead of relying on third-party providers, Exodus will host its own card issuance, payment routing and settlement infrastructure. This reduces friction, lowers costs and creates an integrated environment where digital assets move fluidly between custody, conversion and real-world use.For the industry, the acquisition highlights a growing trend: crypto companies are no longer content with building tools around legacy finance—they are absorbing parts of it. The rise of stablecoins, merchant acceptance tools and instant on-chain settlement is pushing companies like Exodus to claim space in the traditional payments stack.
Regulatory hurdles and timeline
The acquisition is expected to close in 2026, pending approval from regulators in every jurisdiction touched by W3C Corp’s operations. Given the involvement of global card networks and cross-border licensing, the review process may be extensive. Exodus has stated that it will work closely with regulators to ensure a compliant rollout of its expanded services.If the transaction receives clearance, the company plans to accelerate rollout of its XO corporate service, offering businesses access to the same payment rails that will support retail customers. This may position Exodus as a critical intermediary for companies seeking crypto-native treasury management and settlement tools.
Market reaction
Immediately after the announcement, Exodus’s publicly traded shares rose by 3.62%, reflecting investor confidence in the strategic direction. Analysts note that payment infrastructure tends to generate steady revenue—particularly through interchange fees and processing charges—which may help Exodus diversify beyond the cyclical volatility of crypto markets.By combining wallet custody, on-chain functionality and full payment capabilities, Exodus is seeking to build a financial platform that remains resilient regardless of bull or bear cycles.
A defining moment for crypto payments
The acquisition sets the stage for a new era of integrated crypto payments. If the deal closes as planned, Exodus may become one of the first major non-custodial wallet providers to control every layer of its payment stack—from blockchain interaction to card issuance and merchant settlement. It is a bold bet that the future of digital money will require more than storage: it requires infrastructure, licensing and direct access to global networks.For now, the market will be watching closely as Exodus attempts to merge the flexibility of self-custody with the reliability of traditional payment systems—powered, fittingly, by a bitcoin-backed credit engine.
Editorial Team - CoinBotLab
🔵 Bitcoin Mix — Anonymous BTC Mixing Since 2017
🌐 Official Website
🧅 TOR Mirror
✉️ [email protected]
No logs • SegWit/bech32 • Instant payouts • Dynamic fees
TOR access is recommended for maximum anonymity.
🌐 Official Website
🧅 TOR Mirror
✉️ [email protected]
No logs • SegWit/bech32 • Instant payouts • Dynamic fees
TOR access is recommended for maximum anonymity.