Exclusive talks end without a deal, Fortune reports, while the Bank of England’s proposed holding limits draw industry fire and cloud the outlook for sterling stablecoins. [1]
Published: November 12, 2025
Key Points
- Coinbase and BVNK have ended negotiations over a roughly $2 billion acquisition, with a Coinbase spokesperson saying the parties “mutually agreed to not move forward.” [2]
- The decision lands days after the Bank of England unveiled draft rules for sterling stablecoins, including temporary holding caps of £20,000 per person and £10 million for businesses, plus reserve rules mandating at least 40% held as unremunerated deposits at the BoE and up to 60% in short‑term UK government debt. [3]
- Industry figures have raised “deep concerns” about the proposed caps, warning they could hamper adoption and competitiveness for UK stablecoin projects. [4]
What Happened
Coinbase has scrapped plans to acquire London-based stablecoin infrastructure firm BVNK after entering exclusive talks in October. The deal, pegged at about $2 billion, would have marked one of the sector’s larger transactions this year. A Coinbase spokesperson confirmed the breakup was mutual but did not provide a reason. [5]
Fortune first reported the talks had collapsed; Coinbase had been seen as the front-runner after both Coinbase and Mastercard explored buying BVNK earlier in the autumn. Exclusivity with Coinbase followed those parallel discussions, according to the Fortune account summarized by Decrypt. [6]
BVNK, which builds stablecoin rails for corporate payments, raised $50 million in December 2024 at a $750 million valuation, and earlier this year Visa made a strategic investment (amount undisclosed). [7]
Why It Matters
Beyond the loss of a marquee deal for Coinbase, the reversal underscores how regulatory direction in major markets can influence strategic M&A in digital assets—especially in stablecoin infrastructure, where business models hinge on permitted use cases, reserve rules, and distribution. The timing also puts a spotlight on the UK’s evolving rulebook just as global payments players size up acquisition targets and distribution partners in the space. [8]
The UK Regulatory Backdrop
On November 10, the Bank of England (BoE) published a consultation on regulating sterling‑denominated systemic stablecoins. Core proposals include:
- Holding limits during an initial transition phase: £20,000 per coin for individuals and £10 million for businesses, with exemptions possible for large retailers and intermediaries that need bigger balances. The BoE says such limits would be loosened and ultimately removed once risks are better understood. [9]
- Backing assets: Allowing up to 60% of reserves in short‑term UK government debt, with at least 40% held as unremunerated deposits at the BoE; a step‑up regime could temporarily allow up to 95% in government debt for new systemic issuers as they scale. [10]
Major outlets noted that the holding caps diverge from regimes in other financial centers, adding to uncertainty for firms planning UK product rollouts and integrations. [11]
Pushback From Industry
While the BoE frames the limits as temporary safeguards to avoid destabilizing bank deposits during a shift to new forms of money, crypto and fintech leaders have warned that caps at these levels could curb real‑world use, complicate treasury operations, and slow adoption of sterling stablecoins. The consultation invites feedback on both the caps and the reserve mix through early 2026. [12]
Was the BoE Proposal a Factor in the Deal’s Demise?
Neither Coinbase nor BVNK cited a reason for ending talks. However, the proximity of the decision to the BoE’s consultation—especially the per‑coin holding limits—has prompted commentary that the UK’s framework could complicate stablecoin growth strategies. It’s a plausible headwind, though at this stage only speculation; the parties’ public statements attribute the outcome solely to a mutual decision not to proceed. [13]
Where This Leaves Coinbase—and the UK
Coinbase already has deep exposure to stablecoins via its strategic stake in USDC issuer Circle, and it continues to roll out stablecoin‑enabled payment tools for businesses. A BVNK acquisition might have accelerated enterprise distribution—particularly in Europe and the UK—but organic and partnership‑led growth remains on the table. [14]
For the UK, the episode will be read as an early market test for its stablecoin regime. The BoE is seeking a balance between innovation and financial stability, but the calibration of holding limits and reserve rules will likely shape whether global players view Britain as a launchpad or a detour for sterling stablecoins. Feedback to the consultation—and any tweaks to caps or exemptions—will be closely watched by exchanges, card networks, and payment fintechs evaluating UK expansion plans. [15]
The Bottom Line
Coinbase’s retreat from the BVNK deal removes a headline acquisition from the 2025 crypto M&A slate and refocuses attention on regulatory clarity as a prerequisite for big bets in stablecoin infrastructure. The BoE’s draft rules—particularly the £20,000 retail cap and 40/60 reserve split—could still evolve, but they are already reshaping expectations for how, and how fast, sterling stablecoins can scale in the UK. [16]
Sources: Decrypt’s summary of Fortune’s reporting and company statements; Bank of England consultation documents; industry coverage of reactions to the BoE proposals. [17]
References
1. decrypt.co, 2. decrypt.co, 3. www.bankofengland.co.uk, 4. www.fnlondon.com, 5. decrypt.co, 6. decrypt.co, 7. decrypt.co, 8. decrypt.co, 9. www.bankofengland.co.uk, 10. www.bankofengland.co.uk, 11. www.reuters.com, 12. www.fnlondon.com, 13. 99bitcoins.com, 14. decrypt.co, 15. www.bankofengland.co.uk, 16. decrypt.co, 17. decrypt.co
