In a bold strategic move, crypto wallet provider Exodus announced the acquisition of W3C Corp for 175 million dollars, utilizing its Bitcoin reserves as an essential component of the financing. JP Richardson, the company’s CEO, confirmed that this operation has the main objective of closing the gap between asset holding and daily spending, transforming its platform into a comprehensive financial solution.
To materialize this transaction, the company will combine available cash on hand with a strategic credit facility provided by the firm Galaxy Digital. This loan is specifically secured by the Bitcoin reserves that the organization maintains on its balance sheet, highlighting the corporate use of the digital asset. The agreement covers the incorporation of Monavate and Baanx, W3C subsidiaries, allowing Exodus to control the entire payments stack, from custody to card issuance with Visa and Mastercard. Additionally, 58.8 million dollars have already been advanced to support the purchase, with a formal closing projected for the year 2026.
Will Exodus manage to dominate onchain payments by eliminating traditional intermediaries?
On the other hand, this move represents a fundamental shift in the company’s strategy, as it seeks to internalize payments and compliance infrastructure. By integrating processing tools directly into its consumer and enterprise products, the firm will significantly reduce its reliance on third-party vendors. James Gernetzke, chief financial officer, highlighted that the economics derived from interchange and processing fees will become a foundational part of the business. Likewise, this acquisition follows the recent purchase of the stablecoin payments startup Grateful, focused on Latin America.
The market reaction was immediate and favorable, with Exodus shares recording a 3.6% increase following the official announcement on Monday. Thus, the ability to issue cards and process transactions directly positions the company with a unique competitive advantage against other self-custody wallet providers. This will allow support for a broader range of assets, including the most widely used payment stablecoins, facilitating their use in global commerce without technical friction.
The integration of W3C Corp and its subsidiaries marks a milestone in the evolution of decentralized finance towards mass and practical consumer solutions. As the industry advances, the company expects to implement programmable payments and fast settlements leveraging the efficiency of blockchain technology. Finally, investors will be watching how this internal infrastructure will boost revenue and wallet adoption in the coming years.
