For years, Exodus focused on perfecting the self-custodial wallet experience. Now the company is moving into a very different space: payments infrastructure.
Key Takeaways
Exodus is acquiring W3C Corp for $175 million to expand from wallets into full payments infrastructure.
The deal is funded with company cash and a Galaxy Digital credit line backed by Exodus’s Bitcoin reserves.
Monavate and Baanx will give Exodus the ability to issue cards and process payments without third-party partners.
Not just supporting crypto transactions, but owning the machinery that lets digital assets move through the traditional financial system.
A $175 million agreement to purchase W3C Corp — the parent of Monavate and Baanx — is the centerpiece of this shift. Instead of depending on processing partners and card issuers, Exodus wants direct control over the services that sit between a crypto wallet and everyday spending. The goal is to reduce the number of intermediaries between holding assets and actually using them.
A Structural Pivot in the Business Model
If the planned acquisition closes, Exodus won’t just store crypto — it will be able to issue cards, process payments and build compliance frameworks internally. It’s positioning itself to become one of the few companies offering both self-custody and a full payments stack under the same brand.
This is a clear strategic pivot from a wallet-focused product model to a revenue structure built on interchange and processing fees. Chief financial officer James Gernetzke said these fee streams are expected to become a core part of the business once the acquisition is fully integrated.
How Exodus Is Funding the Expansion
The deal is being financed using a mix of company cash and an existing credit line with Galaxy Digital, which is secured by Exodus’s Bitcoin holdings. Ahead of regulatory approval and full closing — currently projected for 2026 — Exodus has already provided $58.8 million to W3C to support the integration of Monavate and Baanx, with the possibility of another $10 million in working capital if required.
Where this becomes visible to users is through XO Swap, Exodus’s onchain exchange aggregator. Once the transaction is completed, XO Swap will gain access to programmable payout tools and turnkey card-issuing capabilities from Monavate and Baanx — infrastructure that would normally require outside vendors.
The acquisition also follows Exodus’s purchase of the Latin America-focused stablecoin payments startup Grateful, reinforcing the long-term strategy of pairing self-custody with real-world spending.
Broader Momentum Behind Blockchain Payments
Exodus is not the only major player betting on blockchain rails for payments. Visa has been testing cross-border banking settlements using USDC and EURC, and Swift is working with Consensys and multiple financial institutions on blockchain-based settlement systems designed for 24/7 global transfers. The trend points to a broader shift in which crypto infrastructure becomes a backend service rather than a speculative product.
In that context, Exodus’s acquisition represents something larger than product expansion. It is a bid to compete directly in the payments layer of the financial system — not by building a new network from scratch, but by purchasing one.
