Coinbase and BVNK have mutually canceled a $2 billion acquisition deal, a significant move that would have expanded Coinbase’s institutional stablecoin offerings. The decision was reached after reaching the due diligence stage in October, with no clear reason provided for the cancellation. This would have been the second-largest deal for Coinbase after acquiring Deribit for $2.9 billion.

The stablecoin market, valued at $312 billion, is gaining momentum due to regulatory developments like the GENIUS Act. The US Treasury estimates the market could reach $2 trillion by 2028. BVNK’s potential acquisition by Coinbase could have boosted its revenue from stablecoin services, accounting for $246 million in the third quarter.

Calling off the deal may allow Coinbase to explore other opportunities in the stablecoin space. BVNK, which had also been in talks with Mastercard for an acquisition, will reassess its strategy. Citi Ventures and Visa had previously invested in BVNK, which processes over $20 billion in annualized volume. BVNK was founded in October 2021 and is based in the UK.

Read more at Cointelegraph: Coinbase and BVNK Cancel $2 Billion Acquisition Deal